S&P gives BBB to China Merchants Port notes

S&P said it assigned its BBB long-term issue rating to a proposed issue of U.S. dollar-denominated senior unsecured notes by CMHI Finance (BVI) Co. Ltd.

The issuer is a wholly owned subsidiary of China Merchants Port Holdings Co. Ltd. (CMPort; BBB/stable/--), which will unconditionally and irrevocably guarantee the notes.

“We believe CMPort will use the notes proceeds to partially fund its recent overseas acquisitions and to refinance existing debt,” S&P said in a news release.

“The stable outlook on the issuer credit rating on CMPort reflects our opinion that the company will remain a large port operator in China, with stable growth in throughput and dividends from investments, and satisfactory profitability over the next 12-24 months. The outlook also reflects our view of a high likelihood of the company receiving support from its state-owned parent, China Merchants Group Ltd., if needed.”

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