S&P rates Sun Hung Kai notes A+

S&P said it assigned an A+ long-term issue rating to a proposed drawdown of senior unsecured notes from the $7 billion medium-term note program guaranteed by Sun Hung Kai Properties Ltd.

Sun Hung Kai Properties (Capital Market) Ltd. will issue the notes.

The agency said it equalizes the issue rating with the issuer credit rating because there is no significant subordination risk in the company's capital structure.

S&P said the issuance will have a limited impact on Sun Hung Kai's leverage because the company intends to use a considerable portion of the proceeds for refinancing.

But the agency said it believes the company's leverage will edge up from a low base, narrowing the rating buffer.

This is because Sun Hung Kai is expected to spend more in upcoming land auctions and for constructing its strong pipeline of residential and commercial property developments, S&P said.

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