S&P rates China Cinda notes A-

S&P said it assigned an A- long-term issue rating to a proposed $3.25 billion drawdown by China Cinda Finance (2017) I Ltd. from its medium-term notes program.

To accommodate this drawdown, the company upsized the program to $10 billion from $3 billion, the agency said.

The program continues to be shared with China Cinda Finance (2017) II Ltd.

The A- and A-2 ratings on the program are not affected by the upsize, S&P said.

China Cinda Finance (2017) I is a special-purpose company directly and wholly owned by China Cinda (HK) Holdings Co. Ltd., the agency said.

S&P said it equalizes the ratings on the notes with the counterparty credit rating on Cinda HK to reflect a view that the guarantee is irrevocable, unconditional and timely, and therefore qualifies for rating substitution treatment.

These obligations rank equally with all other unsecured and unsubordinated obligations of Cinda HK, the agency noted.

The proceeds will be used for working capital, investment and other general corporate purposes, S&P said.

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