S&P gives HKI Properties, notes B+

Standard & Poor's said it assigned its B+ long-term corporate credit rating to HKI Properties Ltd.

The outlook is stable.

At the same time, S&P said it assigned a B+ issue rating to a proposed issue of $100 million in senior unsecured notes under a private placement by HKI Finance Co. Ltd., adding that the notes are guaranteed by HKI Properties.

"The ratings reflect the excellent location of HKI Properties' key projects, its good brand name, particularly in the development of mixed-use projects and expectations of a quick de-leveraging process," said S&P credit analyst Jacphanie Cheung.

These strengths are offset by the company's limited project diversification, high use of debt to fund business growth, limited track record, particularly outside Beijing, limited financial flexibility and relatively weak internal control and risk management compared with its peers, the agency noted.

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