Xinyuan's Ratings Not Impacted By Consent Solicitation

Mon Jan 27, 2014 9:26pm EST

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(The following statement was released by the rating agency) HONG KONG, January 27 (Fitch) Fitch Ratings says today that ratings on Xinyuan Real Estate Co., Ltd (Xinyuan; B+/Stable) and its bonds due 2018 will not be impacted even if the proposed amendments in the consent solicitation announced on 27 January 2014 are adopted. The purpose of the consent solicitation is to bring the indenture of the bonds due 2018 into conformity with the terms of the bonds due 2019. Major proposed amendments of the indenture include raising the cap on the amount and adding categories of permitted indebtedness and permitted subsidiary indebtedness; adding more categories of permitted investments; and waiving the fairness opinion requirement for transactions with significant shareholder TPG Capital. The proposed amendments will loosen the existing indentures on the bonds due 2018, but the changes are not material, especially given the fact that the bonds due 2019 already feature the looser indentures. If the proposed indenture changes are adopted, Fitch expects Xinyuan to have greater investment flexibility to increase its leverage, which will improve its business scale and provide it more opportunities to develop projects with other developers and investors. For a more detailed discussion on Xinyuan’s rating, see “Fitch Rates Xinyuan Real Estate's US Dollar Notes Final 'B+'� dated 6 December 2013 at www.fitchratings.com. Contact: Andy Chang Associate Director +852 2263 9914 28th Floor, Two Lippo Centre 89 Queensway, Hong Kong Su Aik Lim Director + 65 6796 7233 Kalai Pillay Senior Director +65 6796 7221 Committee Chairperson Media Relations: Wai-Lun Wan, Hong Kong, Tel: +852 2263 9935, Email: wailun.wan@fitchratings.com. Additional information is available at www.fitchratings.com. ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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