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 negative.

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

KWG's Ba3 rating continues to reflect its strong brand name, which is supported by its good quality products; its diversified products and its good operating track record in Guangzhou, Chengdu, Suzhou and Shanghai, Moody's said.

The negative outlook reflects the agency's concern that KWG's financial flexibility will remain constrained by its high debt leverage. In addition, its interest coverage is weaker than that of its similarly rated domestic peers.

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