Fitch: Greenland notes BB+

Fitch Ratings said it assigned an expected BB+ rating to Greenland Holding Group Co. Ltd.'s proposed dollar-denominated senior notes.

The notes will be issued by wholly owned subsidiary Greenland Global Investment Ltd. under its $3 billion medium-term note program.

The proceeds will be used for Greenland's overseas expansion, Fitch said.

The notes are rated at the same level as Greenland's senior unsecured rating because they constitute direct, unsubordinated and senior unsecured obligations of the company, the agency explained.

The company has experienced deteriorating financial metrics with its leverage rising to 74% at the end of June from 66% at year-end 2015 and 62% at year-end 2014, Fitch said.

This was due to subdued cash collection to support the fast expansion in its property development and other businesses, the agency said.

Fitch said it believes Greenland's leverage may stay in the high 50% range even after receiving payment in 2017 for the bulk of its uncollected sale proceeds.

© 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.