Fitch: Lifestyle notes BBB-

Fitch Ratings said it assigned an expected rating of BBB- to LS Finance (2025) Ltd.’s proposed dollar-denominated senior unsecured notes.

The notes are to be unconditionally and irrevocably guaranteed by Lifestyle International Holdings Ltd.

The company’s Hong Kong business remains resilient, Fitch said.

The company’s capital expenditure in 2015 will mainly focus on its Shanghai Zhabei Project, reaching HK$1 billion in total, which is conservative compared with the group’s EBITDA of more than HK$2 billion, the agency said.

Given Lifestyle's strong financial position, Fitch said it expects the company to be able to successfully refinance or repay its syndicated loan secured by CWB SOGO and East Point Center, which will mature in 2016.

The agency said the senior unsecured bond rating will not be notched down, given that its senior secured debt-to-EBITDA ratio is 1.7x and the refinancing will not affect this ratio.

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