Fitch rates Sino-Ocean Land notes BB

Fitch Ratings said it assigned an expected BB rating to Sino-Ocean Land Treasure III Ltd.'s proposed dollar-denominated perpetual capital securities.

Sino-Ocean is a wholly owned subsidiary of Sino-Ocean Group Holding Ltd., Fitch said.

The proposed perpetual securities are irrevocably and unconditionally guaranteed by Sino-Ocean Group and will have 50% equity credit until the fifth year, five years before the dividend pusher in year 10, the agency said.

The proceeds will be used for the general corporate purposes of Sino-Ocean Group and its subsidiaries, Fitch said.

The ratings reflect the strong support from China Life Insurance Co. Ltd., which provides a two-notch uplift from Sino-Ocean Group's standalone BB credit profile, the agency said.

Sino-Ocean Group's standalone credit profile is supported by its strong focus on and leading position in targeted tier 1 and 2 Chinese cities, increasing rental income, prudent land acquisitions and diversified funding channels, Fitch said.

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