Fitch applies BB- to KWG notes

Fitch Ratings said it assigned KWG Property Holding Ltd.’s (BB-/stable) proposed dollar-denominated senior notes a BB-(EXP) expected rating.

The notes are rated at the same level as the company’s senior unsecured rating because they constitute its direct and senior unsecured obligations.

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

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

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