S&P rates GLP China notes BBB-

S&P said it assigned a BBB- long-term issue rating to the senior unsecured notes that GLP China Holdings Ltd. proposes to issue.

The notes are under the company's HK$20 billion multi-currency medium-term note program.

The rating is one notch lower than the issuer credit rating on GLP China because a significant amount of the company's senior secured debt ranks ahead of the senior unsecured notes in terms of priority, S&P said.

This is indicated by an estimate that 50% to 55% of GLP China's net operating income will be derived from encumbered assets over the next two years, the agency said.

S&P said it believes the proposed drawdown will have no impact on the issuer credit rating on GLP China because minimal changes are expected in the company's debt balance.

The proceeds from the transaction will primarily go toward refinancing existing debt and for general corporate purposes, the agency said.

The ratings also are driven by the company's status as a core subsidiary of GLP Pte. Ltd., S&P said, along with its robust market position, large scale of operations and favorable access to land resources, S&P said.

The company's geographic concentration and execution risks associated with debt-funded expansion temper these strengths, the agency said.

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