S&P gives BBB- to Red Star Macalline notes

S&P said it affirmed its BBB long-term corporate credit rating on Red Star Macalline Group Corp. Ltd. The outlook is stable.

S&P also affirmed its cnA long-term Greater China regional scale rating on the company.

At the same time, S&P assigned a BBB- long-term issue rating and cnA- long-term Greater China regional scale rating to a proposed issue of U.S. dollar-denominated senior unsecured notes by Hong Kong Red Star Macalline Universal Home Furnishings Ltd., a subsidiary of Red Star. The parent unconditionally and irrevocably guarantees the notes.

“We affirmed the ratings to reflect our expectation that Red Star will maintain its solid market position in China's home improvement and furniture mall business, and generate steady cash flows over the next 12-24 months,” said S&P credit analyst Esther Liu in a news release. “These factors will temper the risk from the company's increasing growth appetite.”

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.