Moody's rates Glorious Property notes B2

Moody's Investors Service said it assigned a definitive B2 senior bond rating to the $300 million 13% notes due 2015 issued by Glorious Property Holdings Ltd. The definitive rating is the same as the provisional rating assigned in October.

Moody's also said it affirmed the company's B1 corporate family rating.

The outlook remains negative.

The rating reflects the high operating and financial risk arising from Glorious' rapid growth plan and short operating track record in the highly volatile Chinese property market, Moody's said.

The rating also factors in the volatility of Glorious' performance due to its reliance on the Shanghai Bay project, which is to be completed in the next two to three years, the agency said.

Despite these weaknesses, Glorious has a high-quality land bank and the majority of its projects are located in the major districts of first-tier cities, Moody's added.

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