Moody's rates R&F HK notes Ba3

Moody's Investors Service said it assigned a Ba3 corporate family rating to R&F Properties (HK) Co. Ltd., a wholly owned subsidiary of Guangzhou R&F Properties Co. Ltd. (Ba2/stable).

Moody's also assigned a Ba3 bond rating to the $600 million 8¾% senior notes due 2020.

The notes were issued by Caifu Holdings Ltd. (unrated) in January 2013 and are unconditionally and irrevocably guaranteed by R&F HK.

The outlook is stable.

"R&F HK's Ba3 corporate family rating reflects its standalone credit strength and a two-notch ratings uplift, based on expected strong financial and operating support from its parent," Kaven Tsang, a Moody's vice president and senior analyst, said in a statement.

The company's standalone credit profile reflects the recurring cash flow from its high quality investment property portfolio as well as adequate liquidity, the agency said.

These strengths are constrained by the current small scale of operations, the agency noted.

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