Moody's assigns Ba3 to Gemdale notes

Moody's Investors Service said it assigned a Ba3 senior unsecured rating to the planned notes drawdown under the medium-term note program issued by Gemdale Ever Prosperity Investment Ltd., a wholly owned subsidiary of Ba3-rated Famous Commercial Ltd.

Famous will guarantee the notes that will be supported by a deed of equity interest purchase undertaking and a keepwell deed between Gemdale Corp., Famous, Gemdale Ever Prosperity and the bond trustee.

"The proposed notes will lengthen Gemdale and Famous' debt maturity profile and will not have a material impact on their credit metrics, since the proceeds will be used mainly for refinancing," said Kelly Chen, a Moody's assistant vice president, in a press release.

The outlook is stable.

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