S&P rates China Resources BBB

Standard & Poor's said it assigned a BBB rating and cnA Greater China credit scale rating to the proposed issue of dollar-denominated senior unsecured notes by China Resources Land Ltd.

The proposed notes have the same terms and conditions as the $750 million senior unsecured notes due May 19, 2016 that the company issued in May 2011, S&P said.

The proceeds will be used for general corporate purposes.

The agency said it incorporated a reasonable size of the new issuance into the ratings on the company, so it doesn't expect the proposed issue to affect the company's credit profile.

The ratings reflect the company's growing recurring income from good quality rental properties and its large, geographically diversified and low-cost land bank, S&P said.

The business and financial assistance from its parent, China Resources Holdings Co. Ltd., also supports the rating, the agency said.

But the company has an aggressive growth appetite, weaker cash flows and capital structure compared with peers and a mixed record in property development, S&P said.

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