S&P rates CIFI notes BB-

S&P said it assigned its BB- long-term issue rating to the U.S. dollar-denominated senior unsecured notes proposed by CIFI Holdings (Group) Co. Ltd.

“We rate the proposed issue one notch below the issuer credit rating on CIFI to reflect the subordination risk. As of June 30, 2020, the company’s capital structure consisted of about Chinese renminbi (RMB) 43.4 billion in secured debt out of total debt of RMB 119.7 billion, and RMB 29.4 billion in subsidiary-level unsecured debt and guarantees. As a result, the company’s priority debt is about RMB 72.8 billion, and the ratio of priority debt to total debt is 60%, above our threshold of 50% for notching down an issue rating,” the agency said in a press release.

Proceeds will mainly be used for refinancing. The company announced a tender ranging from 100% to 102% on its three outstanding U.S. dollar bonds due in 2021 to manage its maturity profile, S&P said.

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