S&P rates Guotai Junan notes BBB+

S&P said it assigned a BBB+ long-term issue rating to the proposed dollar-denominated senior unsecured notes guaranteed by Guotai Junan Securities Co. Ltd.

The notes will be issued by Guotai Junan Holdings Ltd., a subsidiary of Guotai Junan Financial Holdings Ltd.

The agency said it equalizes the rating on the notes with the issuer credit rating on Guotai Junan Securities to reflect a view that the guarantee is irrevocable, unconditional and timely.

The notes will rank equally with all other unsecured and unsubordinated obligations of Guotai Junan Securities, S&P said.

The proceeds will be used to refinance existing debt obligations and for general corporate purposes, the agency said.

S&P said there is a risk that the company may not be able to make timely full payment under the guarantee.

The company is considered a leading securities firm in major business lines across China's securities industry with a moderately high likelihood of extraordinary support from the Shanghai municipal government, if needed, the agency said.

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