Moody’s gives Sunac notes B1

Moody’s Investors Service said it assigned a B1 senior unsecured rating to Sunac China Holdings Ltd.’s proposed dollar-denominated notes. The company plans to use the proceeds mainly to refinance debt.

“The proposed bond issuance will lengthen Sunac’s debt maturity profile without materially impacting its credit metrics, as the company will mainly use the proceeds to refinance existing debt,” said Danny Chan, a Moody’s assistant vice president and analyst, in a press release.

Sunac’s Ba3 corporate family rating reflects its strong sales execution, leading brand and market position in China’s tier one and tier two cities, as well as the good quality of its land bank. The rating also considers Sunac’s good liquidity profile, driven by its rapid asset turnover business model.

The company’s rating, however, is constrained by Sunac’s modest credit metrics, a result of the company’s business expansion and sizable acquisitions over the past two to three years, Moody’s said.

© 2015 Prospect News.
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