Fitch rates Si Chuan Province JuYang notes B/RR4

Fitch Ratings said it assigned Si Chuan Province JuYang Group Ltd.’s (B/stable) proposed dollar-denominated senior unsecured notes an expected rating of B(EXP) with a recovery rating of RR4.

The notes will be issued by JuYang's wholly owned subsidiary Zhong Yi Holdings Ltd. and unconditionally and irrevocably guaranteed by JuYang.

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

“JuYang benefits from consistent profit contributions from its hotel segment, which generated 59% of 2016 group gross profit, excluding property development. A large portion of business contracts and hotel memberships are likely to have helped the company achieve a high average occupancy rate of 79% or higher in 2014-2016,” Fitch said in a news release.

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