S&P rates Chongqing Nan’an 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 by Chongqing Nan'an Urban Construction & Development (Group) Co. Ltd.

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

The company previously issued another two tranches of senior unsecured notes totaling $800 million, the agency said.

S&P said it equalized the issue rating on the proposed senior unsecured notes with the company’s corporate credit rating.

The agency said it expects the debt to be more concentrated at the holding company after this bond issue and the previous issues, which will reduce its ratio of priority debt-to-total assets to 20% to 30%.

The company's priority debt also is concentrated at a few operational subsidiaries while it has large assets and cash flows outside these leveraged subsidiaries. These factors could reduce the structural subordination risk associated with debt at the holding company level, S&P explained.

The ratings reflect an opinion that there is an almost certain likelihood that Chongqing Nan'an district government will provide extraordinary support if needed, the agency added.

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