S&P's Ocean Grand ratings unaffected

Standard & Poor's said its long-term corporate credit rating on Ocean Grand Holdings Ltd. (BB-/stable) was not affected by a proposed five-year $30 million bond issue, given the company's adequate financial ratios.

Proceeds will largely be used to refinance the company's existing short-term borrowings.

Following a $125 million bond issue in November, Ocean Grand repaid a HK$500 million syndicated bank loan and some short-term debt, as stipulated in the bond offering document, and drew down additional bank loans at the end of 2005 for working capital purposes.

Including the new debt, S&P said the company's financial parameters remain within its expectations: Ocean Grand's year-end ratio of net debt to capital is estimated at less than 20% and its ratio of funds from operations to net debt about 50% and it maintains good liquidity, with significant cash holdings as of Dec. 31.

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