Moody's rates Longfor bond Ba3

Moody's Investors Service said it assigned a definitive Ba3 senior unsecured bond rating to the five-year $750 million 9.5% notes issued by Longfor Properties Co. Ltd.

The outlook is stable.

The definitive rating confirms the provisional Ba3 rating assigned in March, Moody's said.

Longfor's Ba2 corporate family rating reflects its well-established market position in China's property market, the agency said, as well as its diversified land bank across several major cities in China.

Although China's domestic bank credit conditions may be tight in 2011, the bond issuance can improve Longfor's liquidity position and extend its debt maturity profile, which will mitigate this risk to some extent, Moody's said.

And due to its good access to funding, Longfor is able to maintain an adequate liquidity position, the agency added.

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