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Showing posts from January 20, 2019

GLP China Holdings Ltd.'s Proposed MTN Program Assigned 'BBB-' Rating

SINGAPORE (S&P Global Ratings) Jan. 21, 2019--S&P Global Ratings today assigned its 'BBB-' long-term issue rating to GLP China Holdings Ltd.'s proposed Hong Kong dollar (HK$) 20 billion senior unsecured multi-currency medium-term note (MTN) program. The issue rating is one notch below the issuer credit rating on GLP China (BBB/Stable/--) because a significant amount of the company's senior secured debt ranks ahead of the senior unsecured MTN in terms of priority. This is indicated by our estimate that 50%-55% of GLP China's net operating income will be derived from encumbered assets over the next two years. We believe the proposed program and any subsequent drawdown will have no impact on GLP China's credit profile. This is because the company will primarily use the proceeds from the transaction to refinance debt and for general corporate purposes. The rating on GLP China, the largest logistics space provider in China, is driven by the comp

DTC Eight Funding RMBS Class B Downgraded To 'BBB+ (sf)' Due To Large-Loan Concentration Risk

OVERVIEW The DTC8 RMBS transaction is backed by a pool of apartment construction loans that Lehman Brothers Commercial Mortgage originated. The loans were extended to finance the construction costs and miscellaneous expenses of rental apartment buildings that Daito Trust Construction newly built. The transaction employs a waterfall that caps credit enhancement for each class of notes, except the most junior, at predetermined levels. This limits the degree of credit enhancement on senior rated classes of the notes. Our criteria for rating Japanese RMBS establish a credit support floor for apartment loans for each rating category to ensure credit stability in cases where there are defaults on large loans. Current credit enhancement on the class B notes of the DTC8 transaction fails to meet a credit support floor that is commensurate with our 'A' category. We are thus lowering to 'BBB+ (sf)' from 'A (sf)' our rating on class B of the notes and remov