Moody's rates Kaisa notes B1

Moody's Investors Service said it assigned a B1 senior rating to Kaisa Group Holdings Ltd.'s proposed dollar-denominated notes issuance and affirmed the company's B1 corporate family rating and senior bond rating. The outlook is stable.

Kaisa plans to use the proceeds for debt refinancing and general corporate purposes. The agency said the proposed notes will further lengthen Kaisa's debt maturity profile and therefore reduce its level of refinancing risk.

Moody's said Kaisa's B1 corporate family rating continues to reflect its track record in developing property projects in major Chinese cities and its ability to purchase land at a low cost for redevelopment projects in Guangdong province, which is its home base.

On the other hand, the rating is constrained by the company's rapid expansion, which has increased its execution risk and debt in the past few years, the agency said.

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