S&P rates Agile notes BB

Standard & Poor's said it assigned a BB rating to Agile Property Holdings Ltd.'s proposed issue of up to $400 million in senior unsecured notes and affirmed the company's BB long-term corporate credit rating.

The outlook was changed to positive from stable.

The notes will rank pari passu with an outstanding $400 million bond issued in September 2006, and the proceeds will be primarily used to fund land acquisitions.

The agency said the outlook revision reflects its expectation that Agile will continue to benefit from its sizable, low-cost land bank and market position to execute its growth strategy as planned. The affirmation also reflect that, despite Agile's plans to increase debt to funds its rapid growth, the company's business growth and financial results in 2006 and the first half of 2007 met S&P's expectations.

The ratings on Agile reflect the company's established presence in the Pearl River Delta region of China and good growth potential, the agency said, partly offset by its fast expansion plan and limited track record in new markets.

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