Moody’s: LVGEM CFR B2, notes B3

Moody's Investors Service said it assigned a B2 corporate family rating to LVGEM (China) Real Estate Investment Co. Ltd. and a B3 backed senior unsecured rating to the proposed dollar-denominated notes to be issued by Gemstones International Ltd., a wholly owned subsidiary of LVGEM.

The proposed notes will be guaranteed by LVGEM.

The outlook is stable.

Proceeds will be used for general corporate purposes and new project acquisitions.

"LVGEM's B2 corporate family rating reflects the company's strong profitability and track record of executing urban redevelopment projects in Shenzhen," Moody's analyst Chris Wong said in a news release.

The company has maintained high profitability over the past three years when compared with its Chinese property peers, the agency added. Its reported gross margins stood at 46%-53% in 2014-2016.

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