Fitch rates Power Best Global notes B+

Fitch Ratings said it assigned an expected long-term foreign-currency issuer default rating of B+ to Hong Kong JunFa Property Co. Ltd.

The outlook is stable.

Fitch also assigned an expected senior unsecured rating of B+ with recovery rating of RR4.

The agency also assigned an expected rating of B+ with recovery rating of RR4 to Power Best Global Investments Ltd.'s proposed dollar-denominated senior notes.

The proposed issuance will be unconditionally and irrevocably guaranteed by Hong Kong JunFa, Fitch said.

The notes are rated at the same level as the company's senior unsecured rating because they constitute direct and senior unsecured obligations of the company, the agency said.

The ratings are supported by the company's strong market position in Yunnan province in south-west China, as well as its experience in old-town redevelopment projects, Fitch said.

The concentration of its land bank in Kunming, the capital of Yunnan, constrains the rating, the agency said.

The risks are mitigated by the high proportion of land that is located in areas where the local government is focused on regenerating, Fitch added.

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