S&P lowers Lai Fung notes

S&P said it reviewed the senior unsecured issue-level rating for Lai Fung Holdings Ltd. that was labeled as under criteria observation (UCO) after publishing its revised issue ratings criteria.

With the criteria review complete, S&P said it removed the UCO designation from this rating and are lowering the rating to B from B+ on the RMB 1.8 billion senior unsecured notes issued by Lai Fung.

This action stems solely from the application of the revised issue rating criteria and does not reflect any change in an assessment of the company's corporate credit rating.

The action takes into consideration Lai Fung's capital structure, S&P said.

This consists of about RMB 2.7 billion of secured debt and RMB 823 million of unsecured debt issued by the company's operating subsidiaries, the agency said.

The senior unsecured notes issued by Lai Fung are rated a notch lower than the corporate credit rating on the company, reflecting significant subordination of this senior unsecured debt relative to other debt in the issuer's consolidated capital structure, S&P said.

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