Moody's: Hopson outlook stable

Moody's Investors Service said it changed to stable from negative the outlook for Hopson Development Holdings Ltd.'s B3 corporate family rating and Caa1 senior unsecured rating.

"The change in outlook reflects Hopson's success in completing its proposed senior notes issuance in January 2013," Jiming Zou, a Moody's analyst, said in a statement.

"This issuance of $300 million with a five-year tenor helps the company partly improve its liquidity and debt maturity profile, thereby contributing to stabilizing the company's near-term credit outlook."

Despite the improving contract sales, Hopson faces the challenge of working down its huge inventory, the agency noted.

In addition, the high level of debt has resulted in weak interest coverage, Moody's said.

On the other hand, Hopson's B3 corporate family rating reflects its established market position and track record of property development, as well as its sizable land bank available for development over the next few years, the agency said.

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