S&P rates Vanke notes BBB

S&P assigned its BBB long-term issue rating to a proposed drawdown under the US$9.5 billion medium-term notes program of Vanke Real Estate (Hong Kong) Co. Ltd.

Vanke continues to have a BBB issuer rating with a stable outlook.

Vanke HK is the key offshore financing subsidiary of China Vanke Co. Ltd. which plans to use the proceeds to refinance its existing debt.

The rating is equalized with the issuer credit rating on Vanke HK due to the absence of secured or subsidiary debt to cause subordination risk.

As of Dec. 31, 2020, Vanke HK's capital structure did not consist of secured debt; it is therefore below the notching-down threshold of 50%.

The new issuance should not impact the company’s financial leverage because the proceeds will be used for refinancing.

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