Fitch: Guangzhou R&F notes BB

Fitch Ratings said it assigned final ratings of BB to Guangzhou R&F Properties Co., Ltd.'s dollar-denominated senior unsecured notes due 2016, yuan-denominated senior unsecured notes due 2014 and dollar-denominated senior unsecured bonds due 2020.

The 10 7/8% $388 million bond due 2016 and 7% ¥2.6 billion notes due 2014 are issued by its subsidiary, Big Will Investments Ltd. Big Will has lent the gross proceeds from offering of the notes to R&F Properties (HK) Co. Ltd. in the form of an intercompany loan, of which payment of principal and interest is guaranteed by R&F.

The 8¾% $600 million senior unsecured notes due 2020 are issued by its subsidiary, Caifu Holdings Ltd. R&F is providing a keepwell deed and an equity interest purchase undertaking for the notes, Fitch said.

Fitch Ratings also said it assigned a long-term local-currency issuer default rating of BB to R&F with a positive outlook and a local-currency senior unsecured rating of BB.

The ratings are constrained by refinancing risk with more than ¥12.8 billion of the debt maturing in 2014, including ¥8.1 billion of bonds and ¥1.4 billion of trust loans, the agency said.

The impending maturity may tie up short-term liquidity and curb growth, Fitch said.

© 2015 Prospect News.
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