Fitch rates Shimao Property notes BBB-

Fitch Ratings said it assigned an expected BBB- rating to Shimao Property Holdings Ltd.'s proposed dollar-denominated senior notes.

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

The ratings are supported by its focus on maintaining high margins from its high quality and well-located land bank rather than increasing contracted sales, the agency said.

The homebuilder maintained an EBITDA margin of 26% to 27% in 2015 through 2016, Fitch said.

The ratings are also supported by the homebuilder's strong execution record and leadership in key regions, the agency said.

Shimao is well-positioned to capture market growth in weaker tier 2 and stronger tier 3 and 4 cities, Fitch said.

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