S&P rates China State notes A

S&P said it assigned an A long-term issue rating and cnAA+ long-term Greater China regional scale rating to the proposed issue of dollar-denominated fixed-rate notes for which China State Construction Engineering Corp. Ltd. will provide an unconditional and irrevocable guarantee.

CSCEC Finance (Cayman) II Ltd., a newly established special purpose entity, will issue the notes, the agency said.

The ratings are equalized with the long-term corporate credit rating on China State Construction, S&P said.

Structural subordination risks are mitigated by a number of factors, including the parent company's high percentage of downstream loans and the group's diversified assets and projects, the agency explained.

The proceeds will be used to finance overseas projects and other general corporate purposes, S&P said.

China State Construction is expected to maintain its strong reputation, large scale, good operating efficiency and stable profitability over the next 12- to 240months, the agency said.

Mitigating factors include the company’s concentration by end-market because of its business focus on housing segments, as well as intense industry competition, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.