S&P gives Sunac China notes BB-

S&P said it gave a BB- rating to Sunac China Holdings Ltd.’s planned dollar-denominated senior unsecured notes.

“We rate the notes one notch below the issuer credit rating on Sunac to reflect structural subordination risk. As of Dec. 31, 2020, Sunac's capital structure consisted of Chinese renminbi (RMB) 227 billion in secured debt and RMB 119 billion in unsecured debt (external guarantee included). As such, the company's secured debt ratio is about 66%, significantly above our 50% threshold for notching down the issue rating. We expect the ratio to remain above the threshold in the next one to two years,” S&P said in a press release.

Sunac China intends to use the proceeds primarily to refinance its offshore debt maturities.

The offering is not expected to significantly affect Sunac's credit profile given its refinancing purpose, the agency said.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.