Moody's rates KWG notes B1

Moody's Investors Service said it assigned a B1 rating to KWG Property Holding Ltd.’s proposed dollar-denominated senior notes. The outlook is negative.

The proceeds will be used to refinance KWG's existing debt and to fund its property projects.

The agency said KWG's Ba3 corporate family rating reflects its strong brand name, good quality and diversified products and good operating track record in Guangzhou, Chengdu, Suzhou and Shanghai.

On the other hand, Moody’s said KWG's overall credit metrics remain weak for the Ba3 rating, and the agency believes KWG's debt leverage and interest coverage will likely remain at the weaker end of its Ba corporate family rating range unless the company is committed to reducing its debt levels.

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