Moody's: Hopson notes at B2

Moody's Investors Service said it assigned a B2 rating to Hopson Development Co. Holdings Ltd.'s proposed dollar-denominated senior notes and affirmed its B1 corporate family rating.

The outlook is stable.

The proceeds will be used to pay construction costs, land premiums and general corporate purposes.

The issuance of new dollar-denominated senior notes will help Hopson cover its committed land payments in the next 12 months, Moody's said.

Moody's noted that the new debt will not increase leverage above 50%, so the company will remain positioned at the B1 level.

The ratings also consider Hopson's geographical diversification in four major cities in China, its well-established market position and strong brand equity in Guangdong Province and Beijing, the agency said.

The ratings are constrained by its aggressive approach to land acquisitions and the weak state of its financial management when compared to its peers, Moody's added.

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