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Showing posts from January 27, 2019

Global Power Synergy Public Co. Ltd. 'BBB-' Rating Affirmed With Negative Outlook Owing To Elevated Leverage

We believe GPSC's proposed acquisition of Glow and investment in an ERU of Thai Oil will result in significantly higher leverage and pose some funding and integration risks. The pace and extent of deleveraging is uncertain over the next 12-18 months, in our view. The investments should improve GPSC's scale and diversity. We also expect ongoing equity and shareholder loans from majority shareholders to support the company's liquidity and funding position. S&P Global Ratings affirmed its 'BBB-' long-term issuer credit rating on GPSC. The rating outlook on the Thailand-based power generator is negative. The negative outlook over the next 12-18 months reflects GPSC's high leverage, some uncertainty on timing and amount of equity funding, and execution risk in integrating the Glow acquisition. SINGAPORE (S&P Global Ratings) Jan. 28, 2019--S&P Global Ratings said today that it had taken the above rating actions. We affirmed the rating with

Siam Commercial Bank Public Co. Ltd.'s Senior Unsecured Notes Under MTN Program Rated 'BBB+'

SINGAPORE (S&P Global Ratings) Jan. 28, 2019--S&P Global Ratings today assigned its 'BBB+' long-term issue rating to a proposed issue of U.S.-dollar-denominated senior unsecured notes by Siam Commercial Bank Public Co. Ltd. (SCB: BBB+/Stable/A-2). SCB is issuing the notes under the bank's US$3.5 billion global medium-term notes program. The rating on these notes reflects the long-term issuer credit rating on SCB. The notes will constitute direct, unconditional, unsecured, and unsubordinated obligations of SCB. They will rank equally with all other unsecured obligations of the bank, except for statutorily preferred obligations.

Fosun's Proposed Guaranteed U.S. Dollar Notes Assigned 'BB' Rating

HONG KONG (S&P Global Ratings) Jan. 28, 2019--S&P Global Ratings today assigned its 'BB' long-term issue rating to the proposed U.S. dollar-denominated senior unsecured notes that Fosun International Ltd. (Fosun; BB/Stable/--) will unconditionally and irrevocably guarantee. Fortune Star (BVI) Ltd., a special-purpose entity, will issue the notes. The issue rating is subject to our review of the final issuance documentation. The rating on the notes is the same as the issuer credit rating on Fosun because of credit substitution under the guarantee. As an investment holding company, Fosun's secured debt at the parent level is less than 50% of the total debt at the parent level. Therefore, we do not notch down the issue rating for structural subordination risk. The proceeds from the proposed notes will be used for refinancing, working capital, and other general corporate purposes. The stable outlook on Fosun reflects our expectation that the company could m

Road King Infrastructure Ltd.'s Proposed Guaranteed U.S. Dollar Senior Unsecured Notes Assigned 'BB-' Rating

HONG KONG (S&P Global Ratings) Jan. 28, 2019--S&P Global Ratings today assigned its 'BB-' long-term issue rating to the U.S.-dollar-denominated guaranteed senior unsecured notes that RKPF Overseas 2019 (A) Ltd. proposes to issue. The notes are guaranteed by Road King Infrastructure Ltd. (RKI; BB-/Stable/--). The China-focused developer with a toll-road portfolio will use the proceeds to refinance its existing debt. The issue rating is subject to our review of the final issuance documentation. We rate RKI's guaranteed senior unsecured notes the same as the issuer credit rating, given limited subordination risk in the company's capital structure. As of Dec. 31, 2017 RKI's capital structure consisted of Hong Kong dollar (HK$) 6.9 billion in secured debt, HK$15.0 billion in unsecured debt at the parent level, and HK$5.9 billion unsecured debt issued or guaranteed by the company's operating subsidiaries. We consider its priority debt to be below

Kookmin Bank's Proposed Subordinated Tranche Under Its GMTN Program And Basel III Tier-2 Notes Rated 'BBB+'

HONG KONG (S&P Global Ratings) Jan. 28, 2019--S&P Global Ratings today assigned its 'BBB+' program rating to the subordinated tranche proposed by Kookmin Bank (A+/Stable/A-1) under the bank's US$8 billion global medium-term note (GMTN) program. We also assigned our 'BBB+' long-term issue rating to Kookmin Bank's proposed U.S. dollar-denominated Basel III Tier-2 sustainability subordinated notes. The notes will be drawn down from the GMTN program. The program and issue ratings are subject to our review of the final issuance documentation. Kookmin Bank intends to use the issuance proceeds to provide loans compliant with its sustainable financing framework. The notes will be direct, unsecured, and subordinated to senior creditors' claims. They will be classified as Basel III Tier-2 regulatory capital. The notes' terms and conditions have a write-down clause that allows the following on the occurrence of a nonviability event: (1) The fu

SK Innovation Outlook Revised To Negative On Aggressive Financial Policy And Higher Debt; 'BBB+' Rating Affirmed

We believe SK Innovation's (SKI) financial policy has become more aggressive over the past 12 months, evident from increasing capital investments, shareholder returns, and debt level. We also expect the ratio of SKI's debt to EBITDA to hover around our downgrade trigger of 1.5x over the next 24 months, due to the volatile oil refining market. We are revising the outlook on SKI to negative from stable. At the same time, we are affirming our 'BBB+' issuer credit rating on SKI and 'BBB+' issue rating on the company's senior unsecured debt. The negative outlook on SKI reflects our view of a more than one-third likelihood of a downgrade, considering that the company's financial credit metrics could have a narrow headroom to maintain the current rating over the next 24 months. HONG KONG (S&P Global Ratings) Jan. 28, 2019--S&P Global Ratings today revised its outlook on SK Innovation Co. Ltd. (SKI) to negative from stable. At the same