S&P rates Road King notes BB-

S&P said it assigned a BB- long-term issue rating to the dollar-denominated guaranteed senior unsecured notes that RKPF Overseas 2020 (A) Ltd. intends to sell. The notes are guaranteed by Road King Infrastructure Ltd.

“We rate RKI's guaranteed senior unsecured notes the same as our issuer credit rating on the company, given limited subordination risk in the company's capital structure. As of Dec. 31, 2020, RKI's capital structure consisted of HK$12.3 billion in secured debt, HK$30.9 billion in unsecured debt at the parent level, and HK$5.4 billion in unsecured debt issued or guaranteed by the company's operating subsidiaries. As such, RKI's priority debt ratio is about 36%, below our notching-down threshold of 50%,” S&P said in a press release.

Road King will use the proceeds for refinancing its $500 million of offshore notes and general corporate purposes.

The outlook is stable.

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