S&P rates China Resources Land notes BBB+

S&P said it assigned a BBB+ long-term issue rating to a proposed drawdown of senior unsecured notes from the $3.9 billion medium-term note program of China Resources Land Ltd. (CR Land).

The agency said it equalizes the issue rating with the issuer credit rating on CR Land because there is no significant subordination risk in the company's capital structure.

The issuance has a limited impact on CR Land's leverage because a considerable portion will be used for refinancing, S&P explained.

In addition, the agency said it expects the company's credit profile to remain stable with the debt-to-EBITDA ratio at 3.1x to 3.7x over the next 12- to 24-months, supported by disciplined growth and satisfactory contracted sales.

The company's strong focus on higher-tier cities supports its contracted sales as the property market slows down, S&P said.

CR Land's rental income also is expected to grow steadily and provide stability to the property developer's credit profile, the agency said.

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