S&P rates Longfor notes BB

Standard & Poor's said it assigned its BB issue rating to a proposed issue of Chinese renminbi-denominated senior unsecured notes by Longfor Properties Co. Ltd. (BB+/stable/--; cnBBB+/--).

The agency also assigned its cnBBB Greater China regional scale rating to the proposed notes.

S&P expects the company to use the net proceeds for refinancing and general corporate purposes.

The issue rating is one notch lower than the corporate credit rating to reflect the agency's opinion that offshore noteholders would be materially disadvantaged, compared with onshore creditors, in the event of default.

In S&P's view, Longfor's ratio of priority borrowings to total assets is likely to remain above its notching threshold of 15% for speculative-grade debt.

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