S&P rates Prime Bloom bonds B-

S&P said it affirmed the B long-term corporate credit rating on Shandong Ruyi Technology Group Co. Ltd. with stable outlook.

The agency also said it affirmed the company's cnBB- long-term Greater China regional scale rating.

S&P also said it assigned B- and cnB+ long-term issue ratings to the proposed senior unsecured bonds that Prime Bloom Holdings Ltd., a wholly owned subsidiary of Shandong Ruyi proposes to issue.

The agency also said it affirmed the B- and cnB+ issue ratings on Prime Bloom's existing $345 million senior unsecured notes.

Shandong Ruyi unconditionally and irrevocably guarantees the notes, S&P said.

The ratings were affirmed because the agency expects the company's operations will remain exposed to high competition and volatile commodity prices and to the fragmented nature of China's textile industry, S&P explained.

The company also has a weaker profitability than its international peers, the agency added.

Its financial leverage also is expected to remain high due to its aggressive debt-funded expansion appetite, S&P said.

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