S&P gives Shanghai Huayi notes BBB

S&P said it assigned its BBB long-term issue rating to the proposed dollar-denominated senior unsecured notes by Huayi Finance I Ltd., a wholly owned subsidiary of Shanghai Huayi (Group) Co. Shanghai Huayi will unconditionally and irrevocably guarantee the notes.

Shanghai Huayi will use the proceeds to refinance its existing $350 million of offshore notes, which mature on Dec. 2.

“The rating on the proposed notes is the same as the long-term issuer credit rating on Shanghai Huayi, because the guarantee meets our criteria for a rating substitution. The company’s priority debt ratio is below 50%, our notching threshold,” said S&P in a press release.

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