S&P provides B- to Hong Seng notes

S&P said it assigned a B- long-term issue rating and cnB+ long-term Greater China regional scale rating to a proposed issue of dollar-denominated senior unsecured notes by Hong Seng Ltd., a subsidiary of Hong Yang Group Co. Ltd. (B/stable/--; cnBB-/--).

The parent unconditionally and irrevocably guarantees the notes.

The rating on the notes is one notch lower than the long-term corporate credit rating on Hong Yang to reflect structural subordination risk.

S&P said it expects Hong Yang to use the proceeds for land acquisitions and other general corporate purposes in accordance with the company's expansion strategy.

In the agency’s view, the new issuance will help Hong Yang to diversify its funding channels and improve its maturity profile.

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