Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers S > Headlines for Sunac China Holdings Ltd. > News item |
Moody's rates Sunac China notes B1
Moody's Investors Service said it assigned a B1 senior unsecured rating to Sunac China Holdings Ltd.'s proposed dollar-denominated notes.
The proceeds will be used to refinance existing debt.
The proposed bond issuance will lengthen Sunac's debt maturity profile and will not have a material impact on its credit metrics because the proceeds will be used mainly to refinance existing debt, Moody's said.
The agency said it expects that Sunac's revenue-to-adjusted debt will improve 75% to 80% over the next 18 months, from about 60% in 2018.
This is supported by an expected increase in revenue recognition from strong contracted sales and controlled spending on land purchases and non-property investments, Moody's said.
Likewise, Sunac's interest coverage, as measured by adjusted EBIT/interest, will likely improve to 3x to 3.2x, from about 2.6x during the same period, the agency said.
The ratings reflect the company's strong sales execution, leading brand and market position in China's tier 1 and tier 2 cities, Moody's said.
The ratings are constrained by the modest credit metrics associated with Sunac's business expansion, the agency said.
© 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.