Moody's rates Zhenro bond B2

Moody's Investors Service said it assigned a B2 senior unsecured rating to Zhenro Properties Group Ltd.'s proposed dollar-denominated senior perpetual capital securities.

The perpetual securities will be issued directly by Zhenro and rank pari passu with all of Zhenro's other present and future unsecured and unsubordinated obligations, Moody's said.

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

The proposed bond issuance will not materially change Zhenro's credit metrics because the proceeds will mainly be used to refinance existing debt, Moody's said.

Zhenro's B1 corporate family rating reflects the company's sizable scale, strong sales execution and quality and geographically diversified land bank, the agency said.

Zhenro also demonstrated improved assess to funding, especially in the debt capital markets, Moody's said.

The ratings are constrained by Zhenro's moderate, but improving financial metrics because of its rapid debt-funded growth, the agency said.

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