S&P gives KWG BB-, notes B+

Standard & Poor's said it assigned its BB- long-term corporate credit rating to KWG Property Holding Ltd.

The outlook is stable.

At the same time, S&P said it assigned its B+ issue rating to the company's proposed issue of senior unsecured notes, adding that the proceeds will be used to finance existing and new property projects and for general corporate purposes.

"The rating on KWG reflects the company's short operational track record outside Guangzhou and its volatile financial history. These weaknesses are tempered by KWG's satisfactory performance in new markets. In addition, it has better execution, and a more diverse geographical coverage and product mix compared with peers' of a similar scale," said credit analyst Bei Fu.

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