S&P rates Times China notes B+

S&P said it assigned a B+ long-term issue rating to the planned issue of dollar-denominated senior unsecured notes by Times China Holdings Ltd.

“We rate the notes one notch below the issuer credit rating on Times China to reflect structural subordination risk. As of Dec. 31, 2020, Times China's capital structure consisted of Chinese renminbi (RMB) 20.6 billion in secured debt and RMB 25.5 billion in unsecured debt at its subsidiary level, which we consider to be priority debt. Unsecured debt at the subsidiary level includes financial guarantees provided to borrowings of joint ventures. The company also has RMB 24.6 billion in unsecured debt at the parent level. As such, Times China's priority debt ratio is about 65.2%, above our threshold of 50% for notching down an issue rating,” S&P said in a press release.

The company intends to use the proceeds to refinance debt.

The outlook is stable.

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