S&P: Sunac China notes B+

Standard & Poor's said it assigned a BB- long-term corporate credit rating to Sunac China Holdings Ltd., along with a B+ rating to its proposed issue of senior unsecured notes.

The outlook is stable.

The proceeds will be used to finance land acquisitions and for general corporate purposes.

The rating reflects the company's project and geographic concentration risks, S&P said, and the sensitivity of China's high-end residential property market to policy changes.

Sunac has a record of weak corporate governance and an aggressive growth appetite, the agency said.

These weaknesses are tempered by Sunac's proven operating track record in Tianjin, Chongqing and Wuxi, which account for more than 80% of its land reserves, S&P said.

The rating also factors in the company's reasonable financial performances in the past three years and its low-cost land bank, the agency added.

© 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.