Fitch assigns CR Land notes BBB+

Fitch Ratings said it assigned China Resources Land Ltd.'s (CR Land; BBB+/stable) proposed dollar-denominated senior unsecured notes an expected BBB+(EXP) rating.

The notes will be issued under its $2 billion medium-term note program and will be consolidated with the $450 million 4 3/8% notes due 2019 issued on Feb. 27 to form a single series.

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

Fitch said CR Land's ratings are supported by its business model of maximizing operating cash flow from its development properties to support the expansion of its investment property portfolio. It enters major tier-2 cities in China selectively, in line with its model of operating investment properties in prime locations nationwide. CR Land's strategy fits into its parent China Resources (Holdings) Co. Ltd.'s aim to be an influential conglomerate that taps China's growing affluence.

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