S&P assigns BAIC notes BBB

S&P said it assigned its BBB long-term issue rating to the proposed U.S. dollar-denominated senior unsecured notes that BAIC Motor Corp. Ltd. will guarantee. BAIC Finance Investment Co. Ltd., a wholly owned special-purpose vehicle established by BAIC, will issue the notes.

“We equalize the issue rating with the issuer credit rating on BAIC because of credit substitution under the guarantee and lack of subordination. We believe BAIC will maintain its net cash position over the next 12-24 months. The company's low debt leverage will limit the possibility of noteholders being significantly disadvantaged relative to other creditors,” S&P said in a press release.

BAIC intends to use the proceeds to refinance offshore debts and replenish working capital.

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