S&P rates Baosteel notes A

Standard & Poor's said it assigned its A issue rating to Baosteel Group Corp.'s proposed issue of Chinese renminbi-denominated senior unsecured notes.

The agency said it also assigned its cnAA+ Greater China scale credit rating to the proposed notes.

In S&P's view, the company's ratio of priority borrowings to total assets is likely to remain below the notching threshold of 20% for investment-grade issuers, the agency said.

S&P said its rating on Baosteel reflects an opinion of a "high" likelihood of timely and sufficient extraordinary support from the government of China in the event of financial distress, and the company's stand-alone credit profile of bbb+.

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