Moody’s assigns Lifestyle bonds Baa3

Moody's Investors Service said it assigned a Baa3 rating to the proposed dollar-denominated bonds to be issued by LS Finance (2025) Ltd., a wholly owned subsidiary of Lifestyle International Holdings Ltd. (Baa3 stable).

Lifestyle will guarantee the proposed bonds.

The outlook is stable.

The proposed bonds will be used for debt repayment and other general corporate purposes.

"While the proposed bond issuance will increase Lifestyle's near-term adjusted debt/EBITDA — measured on the basis of Moody's 2015 EBITDA estimates — to 5x from 4.2x, it will also improve the company's funding stability through lengthening its debt maturity profile," Moody's vice president and senior analyst Lina Choi said in a news release.

"In addition, it will further enhance Lifestyle's already strong balance-sheet liquidity, which included cash and short-term investments of about HK$12 billion at end-2014."

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