S&P rates Sunshine 100 notes B-/cnB+

Standard & Poor's said it assigned its B long-term corporate credit rating and its cnBB- long-term Greater China regional scale rating to Sunshine 100 China Holdings Ltd.

The outlook is stable.

At the same time, the agency assigned its B- long-term issue rating and cnB+ long-term Greater China regional scale rating to a proposed issue of dollar-denominated senior unsecured notes.

Sunshine is expected to use the proceeds to repay or refinance the group's existing debt, to finance new and existing projects and for general corporate purposes.

"The rating on Sunshine reflects the company's weak market position in the residential segment, untested execution in the commercial segment, and high leverage," S&P credit analyst Vincent Lam said in a news release.

"We expect the company's sales and revenue to continue to largely depend on the residential segment over the next two years because the ramp-up of the operating scale in the commercial segment will take a long time to realize. Nevertheless, Sunshine has reasonable geographic diversity, a sizable low-cost land bank, and some financial flexibility."

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