S&P assigns Sinopec notes A+

S&P said it assigned its A+ long-term issue rating to a proposed issue of U.S. dollar-denominated notes for which China Petrochemical Corp. (Sinopec Group) will provide an unconditional and irrevocable guarantee. Sinopec Group Overseas Development (2018) Ltd., a special purpose entity, will issue the notes.

The rating on the notes is the same as the long-term issuer credit rating on Sinopec Group (A+/stable/A-1) because of credit substitution under the guarantee.

“The rating on Sinopec Group reflects the company's a stand-alone credit profile and our opinion that there is an extremely high likelihood that the government of China would provide sufficient and timely extraordinary support to the group in the event of financial distress,” S&P said in a news release.

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