S&P assigns Lai Fung notes B+, cnBB ratings

Standard & Poor's said it assigned its B+ long-term issue rating and its cnBB long-term Greater China regional scale rating to a proposed issue of Chinese renminbi-denominated senior unsecured notes by Lai Fung Holdings Ltd. (B+/stable/--; cnBB/--).

Lai Fung intends to use the proceeds from the proposed issuance to refinance its existing debt and for general corporate purposes.

S&P said the rating on Lai Fung reflects the company's small scale, high geographic and project concentration and volatile cash flows from property development. The company's stable and sizable recurring rental income, which its well-located investment properties support, tempers the above weaknesses.

S&P said it views Lai Fung's business risk profile as "weak" and its financial risk profile as "aggressive."

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