S&P rates China Orient Asset bonds BBB

Standard & Poor's said it assigned a BBB foreign-currency long-term issue rating to the proposed issue of senior unsecured bonds by Starway Assets Enterprises Inc.

The agency also said it assigned a cnA Greater China regional scale rating to the proposed issue.

Starway is a special-purpose vehicle established by China Orient Asset Management (International) Holding Ltd., (Coami) which is ultimately wholly owned by China Orient Asset Management Corp.

Coami has provided a guarantee for the proposed bonds that is unconditional and irrevocable, S&P said, and satisfies payment timeliness under the agency's criteria.

The agency said it expects bond payments to be made on the due dates, which is what Starway is obliged to do under the covenants and what Coami guaranteed.

The ratings are primarily supported by the guarantee, S&P said. The agency noted, however, that the keep-well deeds provided by the ultimate parent, China Orient Asset, are not legally binding as a guarantee on payments.

Nevertheless, S&P said it views the keep-well deed as important consideration for the rating.

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