S&P: China Hongqiao notes BB-

Standard & Poor's said it assigned its BB- rating to the proposed issue of senior unsecured notes by China Hongqiao Group Ltd.

At the same time, the agency said it assigned a cnBB+ Great China regional scale rating to the proposed notes.

S&P said it assigned the issue rating one notch below the company's long-term corporate credit rating to reflect the structural subordination risk that the offshore bondholders face in the event of default. The company's priority borrowings are projected to exceed 25% of total assets in the next two years, more than S&P's threshold of 15% for non-investment grade issuers, the agency said.

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