Moody's rates Famous notes Ba3

Moody's Investors Service said it assigned a Ba3 corporate family rating to Famous Commercial Ltd., a wholly owned subsidiary of Gemdale Corp. (Ba1/stable).

The agency assigned a provisional Ba3 rating to the proposed senior bonds to be issued by Gemdale International Holding Ltd., a wholly owned subsidiary of Famous.

The bonds will be guaranteed by Famous and supported by a deed of equity interest purchase undertaking and a keepwell deed between Famous, Gemdale and the bond trustee.

The outlook is stable.

Proceeds will be used to fund Famous' land acquisitions and working capital requirements.

Famous' Ba3 corporate family rating reflects its B2 standalone credit profile and a two-notch rating uplift, based upon financial and operational support provided by Gemdale, Kaven Tsang, a Moody's vice president, said in a statement.

Moreover, Famous follows Gemdale's disciplined approach in growing its business, the agency noted.

Famous' B2 standalone rating also reflects its small-scale operation and its weak projected credit metrics, Moody's said.

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