S&P rates Gram bonds AA-

Standard & Poor's said it assigned an AA- long-term foreign-currency issue rating to Gram International Ltd.'s proposed bonds.

The agency also said it assigned a cnAAA long-term Greater China regional scale rating to the proposed bonds.

The bond issue is supported by a dollar-denominated single draw irrevocable stand-by letter of credit provided by China Development Bank Corp., S&P said.

Gram International is an indirect, partially owned subsidiary of Guangdong Rising Assets Management Co. Ltd.

The ratings were equalized to the counterparty credit rating on China Development Bank to reflect a letter of credit that will provide adequate and timely coverage of repayment of the bonds issued, S&P said.

The ratings also reflects the bank’s obligation regarding this letter of credit, which is unsubordinated and ranks equally with all other unsubordinated obligations of the bank, the agency said.

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