S&P assigns B to Yuzhou notes

Standard & Poor's said it assigned its B long-term issue rating and cnBB- Greater China regional scale rating to a proposed issue of dollar-denominated senior unsecured notes by Yuzhou Properties Co. Ltd. (B+/stable/--; cnBB/--).

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

Proceeds will be used for general corporate purposes and refinancing existing debt.

S&P said the rating on Yuzhou reflects its limited operating flexibility because of its small operating scale and high geographic and project concentration.

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