S&P rates Tunghsu notes B

S&P said it assigned a B+ long-term corporate credit rating to Tunghsu Group Co. Ltd.

The outlook is stable.

The agency also said it assigned a cnBB long-term Greater China regional scale rating to the company, along with a B long-term issue rating and cnBB- long-term Greater China regional scale rating to the proposed dollar-denominated senior unsecured notes.

The notes will be issued by Tunghsu Venus Holdings Ltd., a special purpose vehicle of Tunghsu Group.

Tunghsu Group will unconditionally and irrevocably guarantee the notes.

The ratings reflect Tunghsu's solid position in the glass substrate business and execution risk while the company expands into new markets, such as solar energy and electric buses, S&P said.

The agency also said it expects company's debt leverage to remain high in the coming 12 months despite improving moderately.

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