S&P assigns A to Dongfeng Motor notes

S&P said it assigned its A long-term issue rating to a proposed issue of euro-denominated fixed-rate notes that Dongfeng Motor Group Co. Ltd. (DFG; A/stable/--) unconditionally and irrevocably guarantees. Dongfeng Motor (Hong Kong) International Co. Ltd., a special purpose vehicle, will issue the notes.

The rating on the notes is the same as the issuer credit rating on DFG because of credit substitution under the guarantee.

“The rating on DFG reflects our opinion that DFG is a core subsidiary of its parent, Dongfeng Motor Corp. (group credit profile: a). We believe there is a high likelihood that the Chinese central government will provide sufficient and timely extraordinary support to DFG (through its parent) in the event of financial distress,” S&P said in a news release.

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