S&P assigns KWG notes B+

Standard & Poor's said it assigned its B+ long-term issue rating to a proposed issue of U.S. dollar-denominated senior unsecured notes by KWG Property Holding Ltd. (BB-/negative/--; cnBB/--).

At the same time, the agency assigned its cnBB- Greater China regional scale rating to the proposed notes.

KWG will use the proceeds from the proposed notes to refinance existing debt and to finance existing and new projects.

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

The agency anticipates that the company's ratio of priority borrowings to total assets will likely remain above its notching threshold of 15% for speculative-grade companies in the next 12 months.

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