S&P rates Golden Wheel notes B

Standard & Poor's said it assigned a B long-term rating and cnBB- long-term Greater China regional scale rating to a proposed issue of renminbi-denominated senior unsecured notes by Golden Wheel Tiandi Holdings Co. Ltd.

The company intends to use the proceeds to fund new property projects and for general corporate purposes, S&P said.

The agency said it equalized the issue rating to the company's corporate credit rating because it believes the company's ratio of priority debt-to-total assets will likely remain below the 15% notching threshold for speculative-grade issuers.

The ratings also reflect the company's revenue concentration in a limited number of projects and cities, its small land bank and the execution risk associated with accelerated expansion, S&P said.

The company's small, but growing, recurring income from investment properties and relatively disciplined financial management temper these risks, the agency said.

© 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.