S&P rates Fujian Yango notes B-

S&P said it assigned its B- long-term issue rating to the proposed dollar-denominated senior unsecured notes to be issued by Yango (Cayman) Investment Ltd., a subsidiary of Fujian Yango Group Co. Ltd. Fujian Yango will guarantee the notes.

“We rate the proposed senior unsecured notes one notch below the issuer credit rating on Fujian Yango to reflect structural subordination risk. As of June 30, 2020, Fujian Yango’s capital structure consisted of about RMB 81.5 billion in secured debt and RMB 61.9 billion in unsecured debt (external guarantee included). As such, the secured debt ratio of about 57% is above our notching threshold of 50%,” S&P said in a press release.

The company intends to use the proceeds mainly to refinance its offshore bank debt maturities due in the next six months of about RMB 830 million and to support the expansion of its education services business

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