S&P rates Panva Gas notes BB+

Standard & Poor's said it assigned its BB+ issue rating to Panva Gas Holdings Ltd.'s proposed $150 million senior unsecured notes. The maturity of the issue has not been finalized, although it is expected to be a medium term facility.

Proceeds from the issue will be used to expand the company's piped gas and liquefied petroleum gas (LPG) businesses and for general corporate purposes.

S&P said the BB+ corporate credit rating on Panva Gas reflects the strong demand and growth potential for piped natural gas and LPG in China, limited competition in the piped gas business, and the company's sound financial position. These strengths are offset by the company's aggressive expansion plans, the potential risks associated with acquiring and integrating piped gas networks from state-owned enterprises, and the risk of unfavorable regulatory changes over the medium to long term.

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