S&P: Chongqing Nan’an Urban Construction notes BBB+

S&P said it assigned a BBB+ long-term issue rating and cnA+ long-term Greater China regional scale rating to a proposed issue of dollar-denominated senior unsecured notes that Chongqing Nan’an Urban Construction & Development (Group) Co. Ltd. proposes to issue.

The proceeds will be used for general corporate purposes, S&P said.

The rating on the issue was equalized with the corporate credit rating on the company, the agency said, reflecting an expectation that the company’s debt will remain concentrated at a few operational subsidiaries and that government subsidies will continue to be directed to the parent level.

These factors could reduce the structural subordination risk associated with debt at the holding company level, S&P said.

The ratings also consider the company’s B stand-alone credit profile and an opinion that there is an almost certain likelihood that Chongqing Nan’an district government will provide support if needed, the agency said.

© 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.