Moody's rates RiseSun notes B1

Moody's Investors Service said it assigned a first-time Ba3 corporate family rating to RiseSun Real Estate Development Co., Ltd.

Moody's also said it assigned a B1 senior unsecured rating to the proposed dollar-denominated notes to be issued by RongXingDa Development (BVI) Ltd. and unconditionally and irrevocably guaranteed by RiseSun.

The outlook is stable.

The proceeds from the bonds will be used for refinancing and business development, the agency said.

The ratings reflect the company's long operating history and strong brand name in the Bohai Rim region, Moody's said, as well as its strong sales execution over the past few years.

RiseSun has a long operating history that spans over 20 years, the agency said.

The company has a good track record of managing through different downcycles in the property sector, Moody's said, and established a well-recognized brand name in the Bohai Rim region.

The company has a strong market position in the Bohai Rim region, which positions it well to benefit from the region's strong economy and property market, the agency said.

The ratings are constrained by the company's concentrated land bank in tier 2 and lower tier cities, Moody's said, and limited diversified funding sources.

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