S&P gives B to Times Property notes

S&P said it assigned its B long-term issue rating to a proposed issue of U.S. dollar-denominated senior notes by Times Property Holdings Ltd. (B+/stable/--).

Times Property intends to use the proceeds to refinance its existing debt and for general working capital use.

This is the second offshore issuance in the past three months for the China-based property developer. In November 2017, the company issued US$300 million 6.6% notes due 2023 for debt refinancing.

“In our view, Times Property's recent offshore issuances provide an alternative funding source to its onshore financing, given bond approvals to developers in China's onshore market remain tight. It also helps the company lower its funding costs, offsetting the impact from the recent surge in onshore funding rates,” S&P said in a news release.

At the end of June 2017, the company's rolling 12-month debt to EBITDA ratio had deteriorated to 6.5x-7.0x, mainly because the company has front-loaded its full-year land-acquisition budget, S&P said.

“With our expectation of higher revenue recognition and stable margins, the company's leverage should gradually improve towards 5x over the next 12 months,” S&P noted in the release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.