Moody's rates E-Land Fashion bond Ba2

Moody's Investors Service said it assigned a provisional Ba2 corporate family rating to E-Land Fashion China Holdings, Ltd., along with a provisional Ba2 senior unsecured rating to its proposed inaugural dollar-denominated bond.

The outlook is stable.

The ratings reflect the company's growing presence in the highly fragmented women's apparel industry in China, its extensive nationwide sales networks and robust profitability, Moody's said.

The rating also is supported by the growing middle class and personal consumption in China, a favorable fundamental that will fuel ongoing growth in its key market, the agency said.

The ratings are counterbalanced by the company's moderate scale and significant business volatility due to high 'fashion risk,' as well as its focus on a narrow product category/consumer demographic, Moody's added.

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