S&P rates Glorious Property notes B

Standard & Poor's said it assigned a B issue rating to Glorious Property Holdings Ltd.'s (B+/stable) $300 million senior unsecured notes due 2015.

The rating on Glorious reflects the company's rapid expansion plan, large committed capital expenditure and limited track record of large-scale operations, the agency said.

These weaknesses are tempered by the company's established presence in Shanghai and its improving geographic reach, the agency noted.

Glorious' total adjusted debt has increased significantly, S&P said, and its debt level is expected to rise further in the second half of 2010 due to funding needs for a large outstanding land premium payment and construction spending.

The company's adjusted-debt-to-EBITDA ratio is expected to rise to about 4x by the end of 2010 from 3x on Dec. 31, 2009.

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