S&P: China Taiping notes BBB-

Standard & Poor's said it assigned a BBB- rating to a proposed issue of senior unsecured notes that China Taiping Insurance Holdings Co. Ltd. unconditionally and irrevocably guarantees.

The agency also said it assigned a cnA- Greater China regional scale rating to the proposed 10-year notes.

China Taiping Capital Ltd., a special purpose vehicle and wholly owned subsidiary of China Taiping Insurance, will issue the notes.

The issue rating is at the same level as the long-term foreign-currency counterparty credit rating on China Taiping Insurance, the guarantor of the notes, S&P said. The notes rank equally with all other unsecured and senior obligations of the company. The proceeds will be used to repay other senior debts and for working capital purposes.

The ratings reflect the combined credit profiles of the China Taiping Insurance group's major operating entities and subordination notching due to the company's status as an insurance holding company, the agency said.

The company's diverse businesses in China and Hong Kong, its strong growth prospects in China and its adequate and improving capitalization and earnings support the rating, S&P said.

The company's capital needs, which partly stem from the strong growth of its subsidiaries in China, offset these strengths, the agency added.

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