China Top 10 Real Estate Developer For 2014 – Rank 4

Poly Real Estate Group

Credit ratings agency Fitch has reviewed the risks and credit-worthiness of new US dollar debt securities proposed by a subsidiary of leading China real estate developer Poly Real Estate, and given the notes a rating of BBB+. The following is the text of the report from the credit agency.

Fitch Ratings has assigned Poly Real Estate Finance Ltd.’s proposed US dollar notes a ‘BBB+(EXP)’ rating. The notes are unconditionally and irrevocably guaranteed by Hengli (Hong Kong) Real Estate Limited (Hengli), a wholly owned subsidiary of Poly Real Estate Group Company Limited (Poly; BBB+/Stable).

In place of a guarantee, Poly has granted a keepwell deed and a deed of equity interest purchase undertaking to ensure that the guarantor, Hengli, has sufficient assets and liquidity to meet its obligations under the guarantee for the proposed US dollar notes.

Furthermore, Poly’s parent, China Poly Group Corporation (China Poly), has also granted a keepwell deed to Poly and Hengli to ensure Poly has sufficient assets and liquidity to meet its obligations under the keepwell and undertaking deeds; and that Hengli has sufficient assets and liquidity to meet its obligations under the guarantee for the notes.

The final rating is contingent on the receipt of final documents conforming to information already received.