S&P affirms Kaisa notes at B+

Standard & Poor's said it affirmed its B+ issue rating on its U.S. dollar-denominated 8 7/8% senior notes due March 2018 issued by Kaisa Group Holdings Ltd. (B+/stable/--; cnBB/--).

At the same time, S&P also affirmed its cnBB long-term Greater China regional scale rating on the notes.

Kaisa intends to add to the notes under the same terms and conditions. S&P said it expects the company to use the proceeds to finance existing and new property projects and for general corporate purposes.

The rating on Kaisa reflects the company's high leverage due to aggressive expansion and its short record of consistent financial management, S&P said. The company's large and low-cost land bank and its established market position in Shenzhen and Guangdong temper these weaknesses, the agency said.

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