Fitch rates Risland notes AA(tha)

Fitch Ratings said it assigned an expected national long-term rating of AA(tha) to Risland (Thailand) Co. Ltd.'s proposed guaranteed debentures of up to 3.5 billion in Thai baht.

The proceeds from the bond issuance will be used for business development and to repay intercompany loans, Fitch said.

The rating on the proposed debentures reflects the credit enhancement provided to investors by the full, unconditional and irrevocable guarantee by Risland's parent, Country Garden Holdings Co. Ltd., the agency noted.

The guarantee ranks at least pari passu with Country Garden's unsecured and unsubordinated obligations, Fitch said.

Country Garden is a leading homebuilder in China with one of the most well-diversified land banks among its peers, which helps it to sustain sales through business cycles, the agency explained.

The company has a significantly larger operating scale and geographic diversification of cash flows compared with peers in Thailand, Fitch said.

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