Moody's assigned a first-time Ba3 corporate family rating to China Fortune Land Development Co. Ltd., with a stable outlook.
The rating agency said Jan. 6 that it also assigned a Ba3 senior unsecured rating to the proposed U.S. dollar notes to be issued by CFLD (Cayman) Investment Ltd., an indirect wholly owned subsidiary of the Chinese real estate developer.
China Fortune Land's rating reflects its standalone credit strength and a one-notch rating uplift, reflecting the agency's assessment that Ping An Life Insurance Co. of China Ltd., the company's second-largest shareholder with a 25.16% stake, could support the developer in times of need, according to Josephine Ho, a Moody's vice president and senior analyst.
Moody's, however, noted that China Fortune Land's standalone credit strength is constrained by its small land bank and moderately high level of debt leverage. The agency believes that the company's cash holdings and proceeds from contracted sales will be adequate to meet its maturing debt over the next 12 months.
The stable ratings outlook indicates that the real estate developer will gradually improve its debt leverage and cash collection, as well as grow its contracted sales and industrial development service revenues.