Moody’s: KWG Property unaffected by issue

Moody's Investors Service said that KWG Property Holding Ltd.'s proposed senior note issuance will not immediately affect the company's B1 corporate family rating or the B2 senior unsecured rating on its dollar-denominated notes.

The outlook is stable.

"The proposed notes issuance will improve KWG's liquidity by lengthening its debt maturity profile and will not affect its credit metrics, because the company will use the proceeds to refinance its existing debt," Franco Leung, Moody's senior vice president, said in a news release.

The agency said it expects that KWG's EBIT interest coverage ratio, including amounts attributable to jointly controlled entities, will improve to around 2.8x to 3.3x over the next 12 to 18 months from 2.7x in 2017.

At the same time, its leverage, as measured by revenue/adjusted net debt, will improve to around 70% to 80% during the same period from 64% in 2017, due to expected revenue growth, supported by strong contracted sales over the past two years.

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