S&P assigns CCC+ to Hopson Development notes

Standard & Poor's said it assigned its CCC+ issue rating and its cnCCC+ Greater China regional scale rating to a proposed issue of U.S.-dollar-denominated senior unsecured notes by Hopson Development Holdings Ltd. (B-/negative/--; cnB-/--).

The rating on Hopson reflects the weak sales execution and very high leverage of the property developer due to aggressive debt-funded expansion. S&P said it expects the company's weak corporate governance and continued related-party transactions to remain rating constraints.

Hopson's established brand name in tier-one cities, diverse revenue stream from a large number of saleable property projects, and its large low-cost land bank temper the above weaknesses, the agency said.

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