Fitch: KWG Property notes BB-

Fitch Ratings said it published a long-term issuer default rating of BB- for KWG Property Holding Ltd. with a stable outlook.

The agency also said it assigned a foreign-currency senior unsecured rating of BB- to the company.

Fitch also said it assigned an expected BB- rating to the company’s proposed dollar-denominated senior notes.

The notes are rated at the same level as KWG's senior unsecured rating because they constitute direct and senior unsecured obligations, the agency said.

The ratings are supported by the company’s established homebuilding operations in Guangzhou, strong brand recognition in higher tier cities across China, consistently high margin, strong liquidity and healthy maturity profile, Fitch said.

The ratings are constrained by the small scale of its development and investment property business, the agency said, as well as the higher leverage after its land purchases in 2016.

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