S&P rates Road King notes BB-

S&P said it assigned a BB- long-term issue rating to a proposed issue of dollar-denominated senior unsecured notes by RKI Overseas Finance 2016 (A) Ltd.

The agency also said it assigned a cnBB+ long-term Greater China regional scale rating to the notes, which are guaranteed by Road King Infrastructure Ltd.

The rating is the same as the corporate credit rating on Road King, S&P said.

The proceeds will be used to refinance its existing debts, the agency said.

The ratings reflect the company's moderate operating scale, weak market position and volatile financial performance in property development, S&P said.

These weaknesses are tempered by the stable cash flow from its toll road business, which is estimated to contribute around RMB 500 million in 2016, the agency said.

Road King has maintained good sales growth so far this year, partly thanks to supportive credit policy in China, S&P said.

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