Fitch: Guangzhou R&F unchanged on tap issue

Fitch Ratings said Guangzhou R&F Properties Co. Ltd.'s issuance of an additional $200 million of its $500 million 8¾% senior notes due 2021 will not affect the BB- rating on the bond.

The tap, issued via Guangzhou R&F's subsidiary Easy Tactic Ltd., carries the same terms and conditions as the existing notes and are rated at the same level as Guangzhou R&F's senior unsecured rating due to keepwell deeds and guarantees.

The outlook on the company is negative.

Guangzhou R&F's ratings are constrained by the company's high leverage due to aggressive land acquisitions in 2017, Fitch noted.

The negative outlook reflects limited headroom for leverage, which is around the threshold where Fitch would consider a downgrade, the agency said.

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