S&P rates Maoye International notes BB, cnBBB

Standard & Poor's said it assigned its BB long-term issue rating and cnBBB long-term Greater China regional scale rating to a proposed issue of Chinese renminbi-denominated senior unsecured notes by Maoye International Holdings Ltd. (BB+/stable/--; cnBBB+/--).

S&P said the rating on Maoye reflects the company's operation in a highly competitive and fragmented department store business. In addition, the company has cyclical cash flows from property sales and a capital-intensive business model. The rating also reflects Maoye's aggressive acquisition appetite to expand its market share.

The company's good ability to consolidate acquired stores, fair geographical diversification, strong market position in a few cities, and operational stability because of its high portion of self-owned properties temper these weaknesses, the agency said.

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