HONG KONG, June 17, 2015 /PRNewswire/ -- AAA is the highest rating given by all rating agencies in the world. Very few companies, mostly large state-owned companies, have received this rating. On June 16, Evergrande Real Estate (3333.HK) announced its plan to issue bonds within China, and became the first company in China to receive the AAA rating by three agencies for both the main entity and the bonds. An original report from Sina Leju follows.
The announcement shows that the total amount of domestic bonds to be issued by Evergrande this time will not exceed 20 billion yuan, and the Phase-1 issuing scale is 5 billion yuan for a period of 5 years. The interest rate inquiry range is 4.3-5.8%. June 19 is the stating date for this issuance of bonds. It is learned that this is the first time that a red-chip company issues domestic bonds.
The agencies that gave Evergrande the AAA rating are CCXR, Dagong Global Credit Rating and United Ratings, which are the three largest and most authoritative credit rating agencies in China.
CCXR believes that Evergrande has a relatively strong capability of cost and risk monitoring and management, as well as diversified financing channels to improve its financial flexibility; Dagong Global Credit Rating thinks that Evergrande has an extensive and balanced layout, and strong adaption and anti-risk capability; United Ratings thinks that based on its continuous growth in sales over the years, its income, profit and scale will be further improved.
It is believed that the reason why Evergrande was able to receive the AAA rating by three agencies is closely related to its favorable fundamentals. From its listing in 2009 to 2014, there has been stable year-by-year growth in the key data of Evergrande. According to the latest performance report, Evergrande's sales in May hit a record high of 16.7 billion yuan in terms of sales in a single month.
