S&P rates Hopson notes B

Standard & Poor's said it assigned a B rating to the proposed issue of dollar-denominated senior unsecured notes by Hopson Development Holdings Ltd.

The rating is subject to review of the final documents.

The rating is one notch lower than the corporate credit rating to reflect an opinion that offshore noteholders would be materially disadvantaged, compared with onshore creditors, in the event of default, S&P said.

The agency said the company's ratio of priority borrowings to total assets will remain above its notching threshold of 15% for speculative-grade debt.

The rating also reflects the China-based property developer's aggressive expansion and its weaker-than-expected cash sales performance in 2010, S&P said.

Hopson's execution ability has been weaker than expected, the agency said. Its weak sales are partially attributable to its heavy exposure to tier-one cities and to high-end projects, S&P said.

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