S&P rates RKPF Overseas notes BB-

S&P said it assigned a BB- long-term issue rating to the dollar-denominated senior unsecured notes that RKPF Overseas 2019 (B) Ltd. proposes to issue.

Road King Infrastructure Ltd. guarantees the notes.

The proceeds will be used to refinance the company's existing debt.

The agency said it rates the company's guaranteed senior unsecured notes the same as the issuer credit rating, given limited subordination risk in the company's capital structure.

S&P said it expects the company to maintain prudent financial management and keep leverage largely stable with a debt-to-EBITDA ratio of 4.3x to 4.6x in 2018 and 2019, up slightly from 4.2x in 2017.

Its market position in China property development remains weak compared with other similar rated peers due to the company's small scale, weak brand recognition and geographical concentration in the Yangtze River Delta, the agency said.

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