Moody's rates KWG notes B1

Moody's Investors Service said it assigned a B1 rating to the dollar-denominated senior notes proposed by KWG Property Holding Ltd. and affirmed the company's Ba3 corporate family rating and B1 senior debt rating. The outlook is stable.

The proceeds of the notes will be used to refinance existing debt and to fund property projects.

The agency said KWG's Ba3 corporate family rating reflects its strong brand name as supported by its quality products and diversified product range, which command premium pricing. It also recognizes KWG's good operating track record in Guangzhou, Chengdu and Suzhou.

On the other hand, the rating is constrained by KWG's relatively low level of geographical diversification and the high execution risk associated with its fast-growth development plan and expansion into new markets, Moody's said.

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