S&P rates Bocom bonds A-

Standard & Poor’s said it assigned an A- long-term foreign-currency rating to a proposed issuance of senior unsecured bonds by Azure Orbit III International Finance Ltd., a special purpose company wholly owned by Bank of Communications Co. Ltd. (Bocom).

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

Bocom’s Macau branch guarantees the bond, S&P said.

The ratings on the bonds have been equalized to the counterparty credit rating on Bocom to reflect a view that the guarantee is irrevocable, unconditional, and timely, the agency said, and qualifies for rating-substitution treatment.

S&P also said it views the creditworthiness of Bocom’s Macau branch to be the same as the bank.

These obligations rank equally with all other unsecured obligations of the branch, other than subordinated obligations, if any, except for certain obligations required to be preferred by law, the agency said.

The proceeds will be used by the company to develop leasing businesses, S&P said.

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