S&P rates KWG Property B+

Standard & Poor's said it assigned a B+ rating to the proposed issue of dollar-denominated fixed-rate senior notes by KWG Property Holding Ltd.

The proceeds will be used to finance existing and new property projects.

The proposed notes have the same terms as those of existing bonds and rank pari passu with all present and future unsubordinated indebtedness of the company. The rating is one notch lower than the issuer rating due to structural subordination risk, S&P said.

KWG's ratio of priority debt-to-total assets will likely remain above the threshold of 15% for speculative-grade ratings in the next 12 months, the agency said.

S&P said it expect KWG's satisfactory property sales and profitability, along with its adequate liquidity, to continue to support its credit profile.

The ratings also factor in a weaker outlook for the Chinese real estate market, the agency added.

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