Moody’s rates Nan Fung securities Baa3

Moody's Investors Service said it assigned a Baa3 rating to the proposed senior perpetual securities to be issued by Nan Fung Treasury (II) Ltd., a wholly owned subsidiary of Nan Fung International Holdings Ltd., and affirmed the latter’s Baa3 issuer rating. The outlook is stable.

The proceeds will be used for general working capital purposes.

The agency said the rating reflects Nan Fung’s long track record in Hong Kong's property market, product diversity, stable recurring income stream partly supported by a growing rental portfolio, strong balance sheet liquidity and low debt leverage.

The rating also considers the relatively small scale of the company’s operations and land bank, resulting in lumpy property sales, as well as its development exposure to the more volatile property market in China, the agency said.

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