Moody's affirms Neo-China

Moody's Investors Service said it affirmed its B1 corporate family and senior unsecured ratings for Neo-China Group (Holdings) Ltd.

The outlook remains stable.

The affirmation follows the company's announcement of its acquisition of 100% equity interest in Zhuhai City Qi Zhou Island Movie Town Co. Ltd. for a total consideration of not more than RMB3.1 billion, the agency said.

"Neo-China's overall financial profile will remain largely unaffected, as the transaction will mostly be funded by the proceeds of the bond raised earlier this year," said Kaven Tsang, Moody's lead analyst for Neo-China.

"While the new investment will further diversify the company's geographic coverage, it will also raise execution risks given Zhuhai is new to Neo-China and the company's ability to develop high-class villas and commercial properties in this new city has yet to be proven."

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