S&P: Dongfeng Motor notes A

Standard & Poor’s said it assigned an A long-term issue rating and cnAA+ long-term Greater China regional scale rating to the proposed issues of euro-denominated fixed-rate notes that Dongfeng Motor Group Co. Ltd. will unconditionally and irrevocably guarantee.

Dongfeng Motor (Hong Kong) International Co. Ltd., an offshore subsidiary of Dongfeng Motor Group, will issue the notes.

The proceeds will be used to refinance the company’s existing bridge loan, S&P said.

The ratings reflect the company’s BBB stand-alone credit profile and an opinion that Dongfeng Motor Group is a core subsidiary of its parent, Dongfeng Motor Corp., the agency said.

There is a high likelihood that the Chinese central government will provide sufficient and timely extraordinary support to Dongfeng in the event of financial distress, S&P added.

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