S&P rates Beijing Enterpises notes BBB+

S&P said it assigned a BBB+ long-term issue rating and cnA+ long-term Greater China regional scale rating to a proposed issue of euro-denominated senior unsecured notes by Talent Yield European Ltd., a wholly owned subsidiary of Beijing Enterprises Holdings Ltd.

Beijing Enterprises will unconditionally and irrevocably guarantee the notes, S&P noted.

The issue rating is the same as Beijing Enterprises' corporate credit rating, reflecting the effect of credit substitution and guarantee, S&P explained.

The company's ratio of priority claims-to-total assets after the bond issue is expected to remain less than 20%, the notching threshold for an investment-grade issuer, the agency said.

The proceeds will be used for refinancing, S&P said.

The stable outlook reflects an expectation that parent company Beijing Enterprises Group Co. Ltd.'s group credit profile will continue to benefit from strong government support, the agency said, and Beijing Enterprises will remain a core subsidiary of the group for the next 24 months.

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