Fitch: China Logistics notes B

Fitch Ratings said it assigned an expected B rating to China Logistics Property Holdings Co., Ltd.'s proposed dollar-denominated senior notes.

The notes have an expected recovery rating of RR4.

The proposed notes are rated at the same level as China Logistics' senior unsecured debt rating because they represent direct, unconditional, unsecured and unsubordinated obligations of the company, Fitch said.

The ratings are supported by the strong industry demand for high-standard warehouses, the company's national geographic coverage and its extensive network, the agency said.

China Logistics also will benefit from its advantage in China's Yangtze-River-Delta region as one of the largest logistic-property owners in the area, Fitch said.

The ratings are constrained by its small scale, low interest coverage of less than 1x at 0.57x in 2016 and continuing funding demand for capital expenditure, the agency said.

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