Lianhe Global: Redsun Properties Group Limited’s Long-term Issuance Credit Rating Unaffected by the Proposed USD Notes Tap Issuance

HONG KONG, 07 November 2019 – Lianhe Ratings Global Limited (“Lianhe Global”), an international credit rating company, says Redsun Properties Group Limited’s (“Redsun”; ‘BB-’/Stable) proposed tap issuance of its USD300 million 9.95% senior notes due 2022 will not affect the ‘BB-’ rating on the notes.

The proposed tap issuance will carry the same terms and conditions as the existing USD notes and is rated at the same level as Redsun’s global scale Long-term Issuer Credit Rating of ‘BB-’ because they constitute Redsun’s unsubordinated and unsecured obligations.

Redsun’s rating reflects its operating track record and continuous expansion into tier 2 and 3 cities, especially in the Yangtze River Delta. However, Redsun’s rating is constrained by its small operating scale, weak competitiveness in land acquisition, moderately high financial leverage and lower-than-peer interest coverage.