S&P: Zhong Hai Sheng notes B

S&P said it assigned a B long-term corporate credit rating to Zhong Hai Sheng Rong (Beijing) Capital Management Ltd. Co.

The agency also said it assigned a cnBB- long-term Greater China regional scale rating to the company.

S&P also said it assigned a B long-term issue rating and cnBB- long-term Greater China regional scale rating to the dollar-denominated senior unsecured notes that Mighty Ocean I Ltd., a special purpose vehicle, proposes to issue.

Zhong Hai Sheng will unconditionally and irrevocably guarantee the notes.

The outlook is stable.

S&P said it expects the company to maintain high debt leverage over the next 12 months at least, due to its short track record and very heavy reliance on debt funding for new investments.

The primary reason for such high leverage is the company's very heavy reliance on debt financing when making new investments, the agency said.

Since the company began operating in 2014, the company has largely relied on Chinese domestic wealth- and asset-management companies, S&P said, as well as collateralized borrowing from Chinese securities companies for financing.

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