Fitch rates Sunac notes BB-

Fitch Ratings said it assigned an expected BB- rating to Sunac China Holdings Ltd.'s proposed dollar-denominated senior notes.

The notes are rated at the same level as Sunac's senior unsecured rating because they constitute its direct and senior unsecured obligations, Fitch said.

The ratings reflect an expectation that the company's leverage will likely stay at less than 50% at year-end 2018, the agency said.

Sunac's management has publicly made a commitment to de-leverage and Fitch said it believes there is no pressure for the company to continue adding to its land bank aggressively as it has more than 100 million square miles of saleable gross floor area on an attributable basis, an ample supply that will last for over five years of development, Fitch explained.

Sunac has not been making material land acquisitions after it bought the Wanda City cultural and tourism assets more than a year ago, the agency added.

The ratings also consider Sunac's geographical diversification and strong contracted sales, Fitch noted.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.