S&P: China Railway notes BBB+

Standard & Poor's said it assigned a BBB+ long-term corporate credit rating to China Railway Group Ltd., along with a BBB+ issue rating to a proposed issue of senior unsecured notes that the company guarantees.

The agency also said it assigned a cnA+ Greater China regional scale rating to the company and the proposed notes.

The outlook is stable.

China Railway Resources Huitung Ltd., a fully owned subsidiary of China Railway, will issue the notes.

The ratings reflect the company's stand-alone credit profile of BB+ and an opinion that there is a high likelihood of timely and sufficient extraordinary support from the Chinese government in the event of financial distress, S&P said.

The agency said it views China Railway as a government-related entity and expects a high likelihood of extraordinary support from the government of China if needed.

The company plays a key role in developing China's railway infrastructure and overseas infrastructure projects, S&P said.

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