S&P: ICBCIL Finance notes A-

S&P said it assigned an A- long-term foreign-currency issue rating to ICBCIL Finance Co. Ltd.’s proposed second drawdown under its $5 billion medium-term note program.

The agency also said it assigned a cnAA long-term Greater China regional scale rating to the proposed notes.

ICBCIL Finance is considered a core subsidiary of the ICBC leasing subgroup and a core subsidiary to the parent bank, Industrial and Commercial Bank of China Ltd., S&P said.

The notes constitute direct, unconditional and senior obligations, which will rank equally with all other present and future unsubordinated and unsecured indebtedness, the agency said.

The rating on the proposed notes is one notch lower than the issuer credit rating on ICBCIL Finance, mainly reflecting an expectation that more senior claims form a significant portion of offshore consolidated assets in the near term, S&P explained.

The proceeds from the issue will be used primarily offshore to fund the acquisition of assets in the ordinary course of business and for other general corporate purposes, the agency said.

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