S&P rates E-Land Fashion notes BB-

Standard & Poor's said it assigned a BB- long-term corporate credit rating to E-Land Fashion China Holdings Ltd., along with a BB- rating to E-Land Fashion China's proposed senior unsecured notes. The proceeds will be used to expand its network and for associated capital expenditure.

The outlook is stable.

The rating reflects the company's relatively small scale on an international basis and its exposure to the highly fragmented and increasingly competitive nature of China's fashion industry, S&P said.

The agency also said it sees risks associated with the company's evolving business strategy and the weaker credit profile of the wider E-Land group.

These weaknesses are counterbalanced by the robust growth in demand for quality women's apparel in China, the company's solid track record, good brand recognition in China and good profitability, S&P added.

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