S&P rates Concord New Energy notes BB-

S&P said it assigned a BB long-term corporate credit rating to Concord New Energy Group Ltd., along with a BB- long-term issue rating to its proposed senior unsecured notes.

The outlook is stable.

The ratings reflect the company's small scale in consolidated capacity, execution risk given aggressive expansion plans and uncertainties related to the evolution of the regulatory framework for renewable energy in China, S&P said.

The agency said it believes Concord's plans to build and operate downstream power facilities could enhance visibility in cash flow generation, but it will increase funding needs, the agency explained.

Potential asset disposals could partially temper the heightened funding needs, S&P added.

The agency also said Concord's ongoing business transformation is likely to enhance its profitability and stability in cash flows.

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