Fitch rates Lai Fung notes BB-

Fitch Ratings said it assigned Lai Fung Holdings Ltd.'s RMB 1.8 billion 6 7/8% senior notes due 2018 a final rating of BB-.

The assignment of the final rating follows the receipt of documents conforming to information already received and the final rating is in line with the expected rating assigned on Feb. 15.

Fitch said recurring earnings support ratings: Lai Fung's stable rental income generated from its prime location properties and a healthy financial profile warrant a higher rating than B+ rated Chinese homebuilders that generate double its EBITDA.

Lai Fung's EBITDA for investment properties/gross interest expenses of 1.5x and total debt/adjusted property assets of 0.24x in financial years ending July 31, 2012, indicated sufficient headroom to meet its current debt obligations.

Its ratings are, however, constrained by its small scale relative to the expansion of investment properties the company is undertaking, the agency said.

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