S&P rates Bestgain notes BBB

Standard & Poor's said it assigned a BBB long-term issue rating and cnA long-term Greater China regional scale rating to an issue of $400 million senior unsecured notes by Bestgain Real Estate Lyra Ltd., a special purpose vehicle wholly owned by Vanke Real Estate (Hong Kong) Co. Ltd.

The notes are a drawdown under the $2 billion medium-term notes program that Vanke (Hong Kong) unconditionally and irrevocably guarantees, S&P said.

Vanke (Hong Kong) is considered a core subsidiary of China Vanke Co. Ltd. because the two entities are strategically, financially and operationally integrated, the agency said.

The notes will be used for general corporate purposes.

The issue rating is one notch lower than the BBB+ corporate credit rating on Vanke (Hong Kong), reflecting structural subordination, S&P said.

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