S&P rates Wiseyear notes BBB-

Standard & Poor's said it assigned a BBB- long-term debt rating to the $1 billion medium-term note program of Wiseyear Holdings Ltd., along with a BBB- rating to its first proposed drawdown.

Kerry Properties Ltd. unconditionally and irrevocably guarantees the program.

The company will mainly use the issue proceeds for refinancing purposes, S&P said.

The rating reflects the company's fair level of recurring income, satisfactory funding flexibility and an established brand name in key markets, including Hong Kong and China, S&P said.

Weaknesses include Kerry's capital-intensive business model, which gradually generates cash flow, but requires large upfront capital outlays, the agency said.

Kerry's financial strength is weaker than it peers, S&P added and it is increasingly exposed to the volatile nature of the Chinese real estate market.

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