Fitch rates Sunac China notes BB

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

The proposed 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 a view that leverage, as measured by net debt-to-adjusted inventory with proportional consolidation of joint ventures and associates, will stay at lower than 40% for a sustained period, the agency said.

Sunac has publicly committed to de-leverage and Fitch said it believes it will not aggressively make land acquisitions or large investments in other businesses.

The company's geographical diversification helps offset local policy restrictions as each local government implements different home-purchase limits, the agency said.

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