Fitch: Golden Wheel notes B

Fitch Ratings said it assigned a long-term local-currency issuer default rating of B to Golden Wheel Tiandi Holdings Co. Ltd., along with a local-currency senior unsecured rating of B.

The outlook is stable.

Fitch also said it assigned an expected B rating to the company's proposed senior unsecured yuan-denominated notes.

The rating on the notes is in line with the company's local-currency senior unsecured of B as the notes will represent direct, unconditional and unsecured obligations of the company, Fitch said.

The ratings reflect the company's small business scale. Its cash flow and sales performance can be volatile due to concentration on only five to six major projects at any one time, the agency said.

Its focus on small commercial projects linked to metro stations may also curb the speed of expansion of business scale, Fitch said.

But the company has a unique business model and proven track record in developing small-sized commercial projects linked to metro stations mainly in Nanjing, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.