Fitch gives Redsun notes B+

Fitch assigned China-based Redsun Properties Group Ltd.’s (B+/Stable) proposed dollar-denominated senior notes a rating of B+ and a recovery rating of RR4.

The notes are rated at the same level as Redsun's senior unsecured rating as they constitute its direct and senior unsecured obligations.

Redsun is a subsidiary of Hong Yang Group Co. Ltd. (B+/Stable).

The group's ratings reflect its expanded contracted-sales scale, supported by improved land-bank diversification and a prudent financial policy, which has kept leverage at around 40%, a healthy level among B+-rated peers.

The ratings are constrained by an attributable sales scale that is smaller than that of BB- rated peers and the pressure to build up land bank to pursue sustained sales growth.

Redsun plans to use the proceeds to refinance existing debt.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.