Moody's rates Champion Sincerity notes Ba3

Moody's Investors Service said it assigned a Ba3 senior unsecured debt rating to the proposed dollar-denominated senior perpetual capital securities to be issued by Champion Sincerity Holdings Ltd. and irrevocably and unconditionally guaranteed by Greentown China Holdings Ltd.

The proceeds of the new dollar-denominated notes issuance will be used to refinance existing debt and for general working capital purposes, Moody's said.

The proposed note issuance will not have a material impact on Greentown's credit metrics because the proceeds will mainly be used to refinance existing debt, the agency said.

Greentown's Ba3 corporate family rating continues to reflect its standalone credit strength and a two-notch rating uplift based on an expectation that the company will receive extraordinary financial support from China Communications Construction Group Ltd., its largest shareholder, if needed, Moody's explained.

The ratings also reflect the company's well-established market position in property development, long operating track record and established brand name, the agency said.

The ratings are constrained by its improving, but still moderate, financial metrics due to debt-funded growth and operating challenges stemming from its growth through joint ventures and associates, Moody's said.

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