Moody's upgrades Road King

Moody's Investors Service said it upgraded Road King Infrastructure Ltd.'s corporate family rating to Ba3 from B1.

Moody's also said it upgraded the senior unsecured ratings of bonds issued by RKI Overseas Finance 2016 (A) Ltd., RKI Overseas Finance 2016 (B) Ltd., RKP Overseas Finance 2016 (A) Ltd. and RKI Overseas Finance 2017 (A) Ltd. to Ba3 from B1.

These entities are wholly owned subsidiaries of Road King, the agency said.

The outlook is stable.

The ratings reflect an expectation that Road King's credit metrics will improve over the next 12- to 18-months on the back of strong contracted sales growth, Moody's said.

The upgrades reflect Road King's improved track record in the property development business in recent years, the agency said.

Road King's leverage will trend toward 75% to 80% over the next 12- to 18-months, from about 60% for the 12 months that ended June 30, 2018, Moody's said.

The improvement in leverage will be driven by its strong revenue growth and cash flow from property sales, the agency said.

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