Moody's assigned a first-time B1 corporate family rating to Huayuan Property Co. Ltd.
The rating outlook is stable.
The China-based real property developer's rating reflects its long operating history and strong brand name in Beijing, as well as its solid funding access because of its close ties with the government, said Franco Leung, a Moody's senior vice president.
Moody's is attributing its stable outlook on the company on its expectation that it will manage to refinance its short-term debt and embrace a disciplined approach in purchasing land to control its debt leverage at acceptable levels over the forthcoming 12 to 18 months.
The rating agency said it could downgrade Huayuan's rating if its credit metrics or liquidity position worsen, or if its parent will reduce its ownership.
