Moody's: No change for Hopson Development

Moody's Investors Service said it sees no immediate impact on Hopson Development Holdings Ltd.'s B2 corporate family and B3 senior unsecured debt ratings, or its negative outlook, from the company's purchases of 100% of Panyu Zhujiang Real Estate Ltd.

Hopson's liquidity profile will not be affected as the acquisition will be fully funded by new equity issuance to the chairman, who will provide the guarantee for the due and punctual performance by the vendor of its obligations subject to a maximum liability of RMB3.6 billion, Moody's said.

The ratings may come under pressure if the additional investments turn out to be significant and adversely affect Hopson's profitability and credit profile, the agency said.

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