S&P rates Powerlong Real Estate notes B-

Standard & Poor's said it assigned its unsolicited B- long-term issue rating and unsolicited cnB+ long-term Greater China regional scale rating to a proposed issue of Chinese renminbi-denominated senior unsecured notes by Powerlong Real Estate Holdings Ltd. (B/stable/--; cnBB-/--).

The company intends to use the proceeds mainly to refinance its existing debt.

The issue rating is one notch lower than the long-term corporate credit rating on Powerlong to reflect S&P's opinion that offshore noteholders would be materially disadvantaged, compared with onshore creditors, in the event of default. S&P anticipates that the company's ratio of priority debt to total assets will remain above the agency's notching threshold of 15% for speculative-grade debt.

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