S&P rates Shandong Gold notes BBB-

S&P said it assigned its BBB- long-term issue rating to the proposed dollar-denominated senior unsecured notes that Shandong Gold Group Co. Ltd. will guarantee. SDG Finance Ltd., a special purpose financing vehicle of Shandong Gold, will sell the notes.

“We equalize the issue rating to the issuer credit rating on Shandong Gold. The company provides an unconditional and irrevocable guarantee to the notes, and this qualifies for credit substitution. In our view, there are no significant elements of subordination risk present in SDG's capital structure. Shandong Gold's ratio of priority debt to total debt is below our notching-down threshold of 50% for structural subordination risk,” S&P said in a press release.

The proceeds will be used to refinance certain indebtedness of the group and for general corporate purposes.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.