S&P rates Bao-Trans notes A-

Standard & Poor’s said it assigned an A- long-term issue rating and cnAA long-term Greater China regional scale rating to a proposed euro-denominated issuance of senior unsecured notes by Bao-Trans Enterprises Ltd.

The rating is the same as the long-term corporate credit rating on Bao-Trans because the subordination risk is limited as the proposed bond will rank pari passu with all the other liabilities of the company, S&P said.

Its parent company, Baoshan Iron & Steel Co. Ltd., intends to use the net proceeds for refinancing, capital expenditure, working capital requirements and general corporate purposes, the agency said.

S&P said it equalizes the rating on Bao-Trans with that on Baoshan because Bao-Trans is likely to get extraordinary government support indirectly through its parent as a core subsidiary.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.