Moody's leaves Times Property unchanged

Moody's Investors Service said Times Property Holdings Ltd.'s B1 corporate family rating and B2 senior debt rating are unaffected by the company's announcement of a tap bond offering on its existing RMB 900 million of 10 3/8% senior notes due 2017. The outlook remains stable.

"The tap issuance will lengthen the company's debt maturity profile, as the proceeds will primarily be used to refinance trust loans," Kaven Tsang, a Moody's vice president and senior analyst, said in an agency news release.

"We expect Times Property's revenue/debt will stay at 100% to 110% and its EBITDA interest coverage will likely be maintained at around 2 times to 2.5 times over the next one to two years. Such results are comparable to that for its single-B-rated peers, with similar operating profiles."

Times Property's B1 corporate family rating continues to reflect its small-to mid-sized operation, geographic concentration in Guangdong Province and exposure to the financing and execution risks associated with its fast-growth business strategy, the agency said.

Nevertheless, the risks associated with its fast expansion are partly mitigated by the company's plans to stay in its home market, its improved liquidity position after its initial public offering in 2013 and its several bond issues this year, Moody’s said.

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