Moody's rates Sino-Ocean Land notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to the proposed senior unsecured notes to be issued by Sino-Ocean Land Treasure IV Ltd., a wholly owned subsidiary of Sino-Ocean Group Holding Ltd. based on the irrevocable and unconditional guarantee of Sino-Ocean Group.

The outlook is stable.

The proceeds will be used primarily to repay its existing debt.

The proposed senior unsecured notes will have no impact on Sino-Ocean Group's credit profile as the proceeds will be mainly used to refinance existing debt, Moody's said it.

The proceeds will also further strengthen Sino-Ocean's currently adequate liquidity, the agency said.

The ratings reflect its standalone credit strength and a two-notch uplift based on an expectation that the company will receive strong support from China Life Insurance Co. Ltd. – its largest shareholder – in the event of financial distress, Moody's said.

The ratings also consider the long operating history in the property sector since 1993 and its focus on operating in high-tier Chinese cities, where demand generally remains robust, the agency said.

On the other hand, the standalone rating is constrained by its moderate financial metrics, Moody's said.

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