Fitch rates China Overseas Land notes BBB+

Fitch Ratings said it assigned final ratings of BBB+ to China Overseas Land & Investment Ltd.’s $250 million re-tap of its 4¼% senior unsecured notes due 2019, $250 million re-tap of its 5.95% senior unsecured notes due 2024 and issuance of $500 million 6.45% senior unsecured notes due 2034.

The notes, which are issued by China Overseas Finance (Cayman) VI Ltd., are unconditionally and irrevocably guaranteed by China Overseas Land & Investment.

The notes are rated at the same level as China Overseas Land’s senior unsecured debt rating as they represent direct, unconditional, unsecured and unsubordinated obligations of the company, Fitch said.

The final rating is in line with the expected ratings assigned June 3, the agency said.

China Overseas Land has been one of the top homebuilders in China since it started operations in 1984, Fitch said.

It has consistently generated high profit margins that reflect its premium prices and effective cost management, the agency said.

The company’s strong brand is supported by its nationwide presence and focus on first-time homebuyers and buyers seeking better homes, Fitch said.

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