Fitch: Logan unchanged on add-on

Fitch Ratings said Logan Property Holdings Co. Ltd.'s proposed additional issuance of its $300 million 6 7/8% senior notes due 2021 will not affect the bond's BB- rating.

The tap issuance will carry the same terms and conditions as the existing notes, Fitch said, and they are rated at the same level as Logan's senior unsecured rating because they are unconditionally and irrevocably guaranteed by the company.

The ratings are constrained by the company's high leverage, which offsets the benefits to its ratings from its increasing scale and strong EBITDA margin of 33%, the agency said.

The company's leverage, as measured by its net debt-to-adjusted inventory with proportionate consolidation of joint ventures and associates, rose to 48% at year-end 2017 from 37% a year earlier, driven by heavy land acquisitions and adjustments to investment property value, Fitch said.

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