Moody's rates Landsea Green bond B3

Moody's Investors Service said it assigned a B3 senior unsecured rating to the proposed dollar-denominated bond to be issued by Landsea Green Group Co., Ltd.

The outlook is positive.

The proceeds will be used to refinance existing debt, Moody's said.

Landsea's proposed bond issuance will not have a material impact on the company's credit metrics because it will use the proceeds for refinancing, the agency said.

Moody's said it expects the company's debt leverage – as measured by adjusted debt-to-EBITDA – will trend toward 3.7x to 3.9x over the next 12 to 18 months, from 3.4x in 2018.

The ratings are supported by the company's recognized brand in the niche green property market, the agency said.

Landsea's green products have attracted sustained demand and higher selling prices when compared to traditional property offerings, Moody's said.

The ratings are constrained by the company's developing track record for its asset-light business model, the agency added.

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