S&P: Baoxin Auto notes BB-

Standard & Poor's said it assigned a BB- long-term corporate credit rating to Baoxin Auto Group Ltd., along with a cnBB+ Greater China scale credit rating.

The agency also said it assigned a BB- rating and cnBB+ Greater China credit scale rating to the company's proposed issue of dollar-denominated senior unsecured notes.

The outlook is stable.

The ratings reflect the company's product and geographic concentration risk and the execution risks associated with its accelerated expansion, S&P said.

The rating also reflects Baoxin's exposure to China's highly competitive and fragmented auto-retail market, the agency said.

Tempering these risks are Baoxin's established market position in east China, its low operating cost structure and high growth potential for the high-end car retail market in China, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.