Fitch rates Shimao notes BB+

Fitch Ratings said it assigned a long-term foreign-currency issuer default rating of BB+ to Shimao Property Holdings Ltd., along with issue ratings of BB+ to its $350 million senior notes due 2016 and $250 million senior floating rate notes due 2011.

The outlook is stable.

The rating is constrained by the company's concentration in the property development sector, Fitch said, adding that market downturn may result in a deterioration in sales and saddle it with inventory.

Shimao's ratings are underpinned by its large well-located land bank, sound profit margins and the positive outlook for the residential property sector, the agency added.

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