Moody’s rates Xinhu Zhongbao notes B3

Moody's Investors Service said it assigned a B3 senior unsecured rating to the proposed dollar-denominated senior notes to be issued by Xinhu (BVI) 2018 Holding Co. Ltd., and unconditionally and irrevocably guaranteed by Xinhu Zhongbao Co., Ltd.

The outlook is stable.

The proceeds will be used to refinance certain of its existing indebtedness and replenish its working capital, Moody’s said.

Xinhu Zhongbao's proposed bond issuance will not have a material impact on the company's credit metrics because it will mainly use the proceeds to refinance existing debt, the agency said.

The ratings also reflect the company's good track record of property sales in the Yangtze River Delta, high quality land bank that it acquired at relatively low cost and good access to funding, Moody’s said.

The ratings are constrained by the weak financial metrics resulting from its debt-funded investments in various financial institutions and other businesses, the agency said.

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