S&P rates Shanghai Electric notes A

S&P said it assigned its A long-term issue rating to the dollar-denominated senior unsecured notes proposed by Shanghai Electric Group Global Investment Ltd., a wholly owned special purpose vehicle of Shanghai Electric (Group) Corp.

The proposed notes will be guaranteed by the issuer’s parent. Shanghai Electric (Group) intends to use the proceeds for general corporate purposes and refinancing offshore debt.

“We equalize the rating on the notes with the issuer credit rating on SEC because of credit substitution under the guarantee,” S&P said in a press release. The rating for Shanghai Electric (Group) reflects the agency’s view the Shanghai municipal government will provide sufficient and timely extraordinary support to SEC in the event of financial distress.

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