Fitch affirms Shanghai Zendai

Fitch Ratings said it affirmed Shanghai Zendai Property Ltd.'s long-term foreign-currency issuer default rating at B+ and removed it from rating watch negative, where it was placed in February 2010.

The agency also said it affirmed Zendai's foreign-currency senior unsecured rating at B+.

The outlook is stable.

These affirmations follow Zendai's settlement of the ¥9.2 billion land premium for the parcel of land acquired for its Shanghai Bund Project in February 2010, as well as greater clarity on the financing and development structure for this project, the agency said.

Fitch said it believes the financial burden of the project should be manageable under its financing and development structure. The superior location of the project should mitigate the development funding risk, the agency added.

But execution risk remains with regards to the project design, construction, sales and leasing, Fitch said.

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