S&P: China National Bluestar notes BBB

S&P said it assigned a BBB long-term issue rating and cnA long-term Greater China regional scale rating to a proposed issue of senior notes by Bluestar Finance Holdings Ltd.

China National Bluestar (Group) Co. Ltd. will guarantee the issuance, the agency said.

The proceeds will be used to refinance existing debt and for general corporate purposes, S&P said.

The rating on the notes is the same as the corporate credit rating on China National Bluestar because the company unconditionally and irrevocably guarantees the notes, the agency said.

Although the company’s ratio of priority claims-to-total assets could exceed the 20% notching threshold, the company's diverse businesses and operating assets at the parent level temper the structural subordination risk associated with the indebtedness at the holding company level, S&P said.

China National Bluestar has a stable outlook, reflecting an opinion that parent company China National Chemical Corp. (ChemChina) will maintain its group credit profile and that Bluestar will remain ChemChina's core subsidiary over the next two years, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.