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Showing posts from February 10, 2019

National Australia Bank Ltd.'s Capital Notes 3 Rated 'BB+'

SYDNEY (S&P Global Ratings) Feb. 11, 2019--S&P Global Ratings today said it has assigned its 'BB+' issue credit rating to National Australia Bank Ltd.'s (NAB; AA-/Negative/A-1+) proposed hybrid instruments, NAB Capital Notes 3 (NAB CN3). We rate NAB CN3 four notches below NAB's stand-alone credit profile (SACP) of 'a-'. The starting point of the SACP reflects our view that it is unlikely that the Australian government's support for NAB and other Australian banks--if needed--would extend to the hybrid capital instruments issued by the banks. To arrive at the rating on the NAB CN3 notes, we deduct four notches off NAB's SACP (a-), reflecting the following factors: We deduct one notch for the subordinated status of NAB CN3; Two notches for the risk of partial or untimely payment; and One notch for a nonviability contingent capital feature that would require NAB to convert all or a proportion of NAB-CN3 into ordinary shares or write t

National Housing Finance and Investment Corp. Assigned 'AAA/A-1+' Ratings With Stable Outlook

Australian government entity National Housing Finance and Investment Corp.'s (NHFIC) obligations are guaranteed by the Commonwealth of Australia under an Act of Parliament. Based on the guarantee and operating arrangements, we consider the credit quality of NHFIC to be equivalent to that of the Commonwealth. We are assigning our 'AAA' long-term and 'A-1+' short-term issuer credit ratings to NHFIC. We are also assigning a 'AAA' long-term rating to the proposed senior unsecured notes to be issued under NHFIC's debt issuance program. The stable outlook reflects that on the Commonwealth. MELBOURNE (S&P Global Ratings) Feb. 11, 2019--S&P Global Ratings said today that it has assigned its 'AAA' long-term and 'A-1+' short-term issuer credit ratings to Australian government entity National Housing Finance and Investment Corp. (NHFIC). The rating outlook is stable. At the same time, we assigned our 'AAA' long-term

Zhenro Properties Group Ltd.'s Proposed U.S. Dollar Senior Notes Assigned 'B-' Rating

HONG KONG (S&P Global Ratings) Feb. 11, 2019--S&P Global Ratings today assigned its 'B-' long-term issue rating to a proposed issue of U.S. dollar-denominated senior notes by Zhenro Properties Group Ltd. (B/Stable/--). The China-based developer intends to use the net proceeds to refinance its existing indebtedness. The rating is subject to our review of the final issuance documentation. We rate the proposed senior notes one notch below the issuer credit rating on Zhenro to reflect structural subordination risk. By the end of 2018, Zhenro's capital structure consists of Chinese renminbi (RMB) 38.3 billion in secured debt, as well as RMB14.1 billion in unsecured debt. As such, Zhenro's priority debt ratio is around 73%, which is significantly above 50%. In our view, the new issuance will mildly improve Zhenro's capital structure if the company uses the proceeds to pay down short-term financing such as trust loans. However, the impact on Zhenro

China Aoyuan Group Ltd.'s Proposed Guaranteed U.S. Dollar Senior Unsecured Notes Assigned 'B' Rating

HONG KONG (S&P Global Ratings) Feb. 11, 2019--S&P Global Ratings today assigned its 'B' long-term issue rating to the U.S.-dollar-denominated guaranteed senior unsecured notes that China Aoyuan Group Ltd. proposes to issue. The China-based property developer Aoyuan (B+/Stable/--) intends to use the proceeds to refinance its existing debt. We rate the notes one notch below the issuer credit rating on Aoyuan to reflect structural subordination risk. As of Dec. 31, 2017, the company had around Chinese renminbi (RMB) 22 billion of secured borrowings and RMB5.9 billion of unsecured debt at the subsidiary level, together comprising around 70% of total reported debt. The issue rating is subject to our review of the final issuance documentation. We don't expect the new issuance to have any significant impact on Aoyuan's credit profile, apart from a slight maturity extension. That said, we estimate Aoyuan will continue to grow its debt at a moderate pace an