Fitch rates KWG Group notes BB-

Fitch Ratings said it assigned an expected BB- rating to KWG Group Holdings Ltd.'s proposed dollar-denominated senior notes.

The proposed notes are rated at the same level as KWG's senior unsecured rating because they will constitute its direct and senior unsecured obligations, Fitch said.

KWG's ratings are supported by its established homebuilding operations in Guangzhou, strong brand recognition in higher-tier cities across China, consistently high margin, strong liquidity and healthy maturity profile, the agency said.

The ratings are constrained by the small scale of the company's development and investment property business as well as its higher leverage after land purchases in 2016, Fitch said.

KWG's landbank is diversified across China's Greater Bay area, which includes Guangzhou, Foshan and Hong Kong, the agency said, as well as eastern and northern China.

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