Moody’s rates Haimen Zhongnan notes B3

Moody's Investors Service said it assigned a B3 senior unsecured rating to the proposed dollar-denominated notes to be issued by Haimen Zhongnan Investment Development (International) Co., Ltd.

The outlook is stable.

The notes will be irrevocably and unconditionally guaranteed by Jiangsu Zhongnan Construction Group Co., Ltd., Moody’s said.

The proceeds will be used to refinance existing debt, the agency said.

The proposed notes issuance will lengthen Jiangsu Zhongnan's debt maturity profile and will not have a material impact on its credit metrics because the proceeds will be used to refinance existing debt, Moody’s said.

Jiangsu Zhongnan's B2 corporate family rating reflects the company's strong sales execution and established brand name in property development in Jiangsu province, along with its large operating scale, the agency said.

The company also benefits from synergies between its property development and construction services segments, Moody’s said.

The ratings are constrained by Jiangsu Zhongnan's geographic concentration in Jiangsu Province, exposure to risks associated with its rapid business expansion and its moderate, but improving financial metrics, the agency said.

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