S&P rates Yuzhou Properties notes B+

S&P said it assigned its B+ long-term issue rating to a proposed issue of dollar-denominated senior notes by Yuzhou Properties Co. Ltd.

The outlook is stable.

The issue rating is one notch lower than the long-term issuer credit rating to reflect the structural subordination risk, the agency said.

Yuzhou intends to use the net proceeds primarily to refinance existing debt, and to a lesser extent for general corporate purposes.

“Despite tighter credit conditions in China, we believe the company's liquidity pressure should be manageable given its steady sales growth and sizable cash holdings,” the agency said in a news release.

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