S&P rates Wuhan Real Estate notes BBB-

S&P said it assigned a BBB- long-term issuer credit rating to Wuhan Real Estate Development & Investment Group Co. Ltd.

The agency also said it assigned a BBB- rating to the company's proposed issue of senior unsecured notes.

The outlook is stable.

S&P said it expects Wuhan Real Estate to use the proceeds from the new notes to refinance existing debt, as well as for general corporate purposes.

The rating reflects the company's operational concentration within Wuhan and very highly leveraged financing position, the agency said.

The Wuhan government's ongoing capital injections and other forms of support help to sustain the company's capital structure despite its weak financial metrics, S&P said.

The ratings are supported by the company's solid growth prospects, strong budgetary performance and exceptional liquidity, the agency said.

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