S&P rates Sunac notes B+

S&P said it assigned its B+ rating to a proposed offering of dollar-denominated senior unsecured notes by Sunac China Holdings Ltd.

“We rate the notes one notch below the issuer credit rating on Sunac to reflect structural subordination risk. As of Dec. 31, 2019, Sunac's capital structure consisted of about Chinese renminbi (RMB) 252 billion in secured debt and RMB 112 billion in unsecured debt (external guarantee included). As such, the company's secured debt ratio is around 69%, which is significantly above our notching-down threshold of 50% for issues,” S&P said in a press release.

The company intends to use the proceeds primarily to refinance offshore debt maturing in the first quarter of 2021.

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