Moody's rates China Overseas bond Baa2

Moody's Investors Service said it assigned a Baa2 rating to China Overseas Land and Investment Ltd.'s proposed dollar-denominated bond issue. The agency also assigned a Baa2 issuer rating.

The outlook is stable.

The proceeds will be used to fund new and existing projects, as well as refinance existing borrowings, Moody's said.

The proposed bond issue is in line with an expectation that the company will raise new and longer-term debt to fund its planned growth and refinance existing debt, Moody's said.

Although it will increase its balance sheet leverage towards the high end for its rating level, the agency said it expects the company to keep adjusted net debt-to-capitalization ratio below 35% over next two to three years, the agency said.

The ratings also reflect the company's leading market position in China's property sector, Moody's said, and the business and financial risk exposures associated with the company's rapid expansion.

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