S&P rates Central China Real Estate notes BB-

Standard & Poor's said it assigned a BB- long-term issue rating and cnBB+ long-term Greater China regional scale rating to a proposed issue of Singapore dollar-denominated senior notes by Central China Real Estate Ltd.

The proceeds will be used to refinance the company's convertible bond due August 2014 and for general corporate purposes, S&P said.

The agency said it equalized the notes' rating with the company's corporate credit rating because the company's ratio of priority debt-to-total assets will likely remain below the notching threshold of 15% for speculative-grade issuers.

The ratings reflect the company's increased debt leverage, growing competition in Henan province and limited geographic diversity, S&P said.

The ratings also consider its focused strategy and established market position in Henan, good sales execution and sizable low-cost land reserves, the agency said.

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