S&P rates Guotai Junan notes BBB+

S&P said it assigned its BBB+ long-term issue rating to the planned dollar-denominated notes (Yulan bonds) that Guotai Junan Securities Co. Ltd. will guarantee.

The notes will be drawn down from the $3 billion medium-term note program by Guotai Junan Holdings Ltd., a subsidiary of Guotai Junan Financial Holdings Ltd., which is wholly owned by GTJA.

“We equalize the rating on the notes with the issuer credit rating on GTJA to reflect our view that the guarantee is irrevocable, unconditional and timely, and therefore qualifies for rating substitution treatment. The notes will rank equally with all other unsecured and unsubordinated obligations of GTJA,” S&P said in a press release.

The company will use the proceeds to refinance debt and for general corporate purposes of the group under the National Development and Reform Commission and State Administration of Foreign Exchange (SAFE) rules.

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