Moody's rates Scenery Journey notes B2

Moody's Investors Service said it assigned a first-time B1 corporate family rating to Hengda Real Estate Group Co. Ltd., a 63.5% owned onshore subsidiary of China Evergrande Group.

The agency also said it has assigned a first-time B2 corporate family rating to Tianji Holding Ltd., a wholly owned offshore subsidiary of Hengda.

Moody's also said it assigned a B2 senior unsecured rating to the proposed notes to be issued by Scenery Journey Ltd. and guaranteed by Tianji.

The outlooks on all of the companies are positive.

The proposed notes will also be supported by a deed of equity interest purchase undertaking and a keepwell deed between Hengda, Tianji, Scenery, Moody's explained, and the bond trustee.

The proceeds will be used mainly for offshore debt refinancing by Hengda, Moody's said.

The agency said it expects that Hengda will complete the note issuance upon satisfactory terms and conditions, including proper registrations with the National Development and Reform Commission in China.

The ratings reflect the company's status as an onshore flagship subsidiary of Evergrande, the agency said, and as the platform that owns and manages Evergrande's core property development business in China.

The ratings also consider its strong sales execution, Moody's said.

This projected sales growth is underpinned by the company's sizable land reserves nationwide, which totaled 809 projects with 256 million square meters in gross floor area as of June 30, the agency said.

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