S&P assigns Sinochem notes A-

S&P said it assigned its A- long-term issue rating to Sinochem Hong Kong (Group) Co. Ltd.’s proposed dollar senior unsecured medium-term notes under its $10 billion medium-term note and perpetual securities program.

Sinochem Offshore Capital Co. Ltd., a special purpose vehicle, will issue the notes and Sinochem Hong Kong will guarantee them.

“The rating on the proposed notes is the same as the issuer credit rating on Sinochem Hong Kong (A-/stable/) because of credit substitution under the guarantee. Although the company’s priority debt ratio exceeds our 50% notching threshold, we do not notch down the issue rating. This is due to our view that Sinochem Hong Kong is a core subsidiary of Sinochem Group, which has a very high likelihood of receiving extraordinary government support,” S&P asid in a press release.

Sinochem Hong Kong will use the proceeds for refinancing purposes.

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