S&P gives Sinopec notes A+

S&P said it assigned its A+ long-term issue rating to a proposed issue of U.S.-dollar-denominated notes, which will be guaranteed by China Petrochemical Corp. (Sinopec). Sinopec Group Overseas Development (2018) Ltd., a special purpose entity, will issue the notes.

“We equalize the rating on the notes with the long-term issuer credit rating on Sinopec (A+/stable/A-1), given that the guarantee qualifies for a credit substitution. Moreover, Sinopec's priority debt ratio is less than 50%, our threshold for notching down an issue rating,” the agency said in a press release.

Sinopec intends to use the issuance proceeds to refinance debt and for general corporate purposes.

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