S&P rates Yango notes B-

S&P said it assigned a B- long-term issue rating to proposed dollar-denominated senior unsecured notes by Yango Justice International Ltd., a subsidiary of Yango Group Co. Ltd.

The parent unconditionally guarantees the notes.

The proceeds will be used to refinance the company's existing debt, S&P said.

The senior unsecured notes are rated one notch lower than the issuer rating because of subordination risk, the agency noted.

The company is expected to maintain high leverage in the coming few years to support its strong growth appetite, S&P said.

But, the agency also noted that Yango has high refinancing risk relative to peers amid a substantial amount of short-term debt and non-bank borrowings.

S&P said it forecasts the company's 2017 debt-to-EBITDA ratio at about 15x, moderately improving to about 12x in 2018.

© 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.