Moody's rates Greenland Global notes Ba2

Moody's Investors Service said it assigned a Ba2 rating to the proposed senior unsecured dollar-denominated notes to be issued by Greenland Global Investment Ltd.

The notes will be issued under Greenland Global's medium-term note program, which is unconditionally and irrevocably guaranteed by Greenland Holding Group Co. Ltd., the agency said.

The outlook is stable.

The proceeds from the proposed issuance will be used to refinance Greenland Holding's existing debt and for general corporate purposes, the agency noted.

The new issuance will not have a material impact on its credit metrics and will slightly extend Greenland Holding's debt maturity profile because the proceeds will mainly be used to refinance existing debt, Moody's explained.

The agency said it expects Greenland Holding's revenue-to-adjusted debt will trend toward 130% to 140% over the next 12- to 18-months, from 120% for the 12 months that ended in June 2018.

These improvements will be driven by the company's steady contracted sales growth and slower debt growth in the past two years, its prudent land acquisition strategy and its continued focus on improving its cash collection, Moody's said.

The ratings are constrained by its weak interest coverage and by the execution risks associated with its fast growing non-property businesses, the agency said.

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