S&P rates Lianyungang Port notes BBB-

S&P said it assigned a BBB- rating to a proposed dollar-denominated senior note offering by Shanhai (Hong Kong) International Investments Ltd.

Shanhai is a wholly owned subsidiary of Lianyungang Port Group Co. Ltd., which will guarantee the notes. Lianyungang Port is rated BBB-, which reflects the effect of credit substitution, and the guarantee.

“We estimate LYGP’s ratio of priority debt to total debt to be below 50%, our notching threshold for structural subordination risk,” said S&P in a news release.

S&P believes proceeds will be used to refinance offshore debt.

The outlook is stable.

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