S&P rates Sunac China notes B+

S&P said it assigned a B+ rating to a proposed issue of dollar-denominated senior unsecured notes by Sunac China Holdings Ltd., which is rated BB-.

“We rate the notes one notch below the issuer credit rating on Sunac to reflect structural subordination risk,” said S&P in a press release.

Proceeds will be used primarily to refinance its existing debt.

“We do not expect the new issuance to significantly affect Sunac’s credit profile. In our view, the company will maintain strong sales execution and sustainable profitability while continuing to gradually improve its financial leverage through cash collection and more controlled spending,” said the agency.

The outlook is stable.

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