Moody's assigns B2 to Ronshine notes

Moody's Investors Service said it assigned a B2 rating to Ronshine China Holdings Ltd.’s (B1 stable) proposed U.S. dollar-denominated senior notes.

Ronshine plans to use the proceeds from the proposed notes to refinance existing debt.

“Ronshine's B1 Corporate Family Rating (CFR) reflects (1) its growing scale and track record of developing properties in the Yangtze River Delta region and Fujian Province, (2) its good liquidity, (3) strong market position and sales execution in its key markets,” says Kelly Chen, a Moody's assistant vice president and analyst, in a news release.

“However, the rating is constrained by its high debt leverage due to its rapid expansion strategy, and increasing exposure to joint venture businesses.”

Moody’s said the proposed bond issuance will lengthen Ronshine's debt maturity profile and will not have a material impact on its credit metrics, because the proceeds will be used for refinancing.

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