Geely Automobile Holdings Ltd.#s Proposed U.S. Dollar Senior Unsecured Notes Assigned #BBB-# Rating

Stocks and Financial Services Press Releases Friday January 12, 2018 17:30
HONG KONG--12 Jan--S&P Global Ratings

HONG KONG (S&P Global Ratings) Jan. 12, 2018--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 Geely Automobile Holdings Ltd. (Geely Auto, BBB-/Stable/--). The rating is subject to our review of the final issuance documentation.

The issue rating is the same as the long-term corporate credit rating on Geely Auto, as we believe holders of the notes are not structurally subordinated to other creditors of the company. This is because the Chinese automaker has limited borrowings (especially at the operating subsidiaries level) due to large cash balances. We expect Geely Auto to generate positive free operating cash flow over the next two years.

The company plans to use the bond proceeds to refinance existing debt and for general corporate purposes.

Our 'BBB-' long-term corporate credit rating on Geely Auto reflects our expectation that the company and its parent, Zhejiang Geely Holding Group Co. Ltd., will continue to improve their competitive positions and materially grow their sales volume in the Chinese and global auto market over the next 12-24 months. In our view, the companies' good product design and improving quality will support growth. We also anticipate that both entities will at least maintain their profitability, as a result of ongoing cost controls. However, their operations will continue to be subjected to the cyclical and competitive nature of the Chinese and global auto markets.


Latest Press Release

Photo Release: Bangkok Bank presented prizes to Be1st debit cardholders to enjoy a trip to London and watch a Chelsea football match

Bangkok Bank Executive Vice President Pochanee Kongkalai (5th from left) Senior Vice President Debit Card Consumer Banking Sudrutai Thongsong (4th from left) and Vice President, Credit Card Division Mayuree Tantibhana (5th from right) presented prizes...

TRIS Rating Affirms Company Rating of PHATRA at A- and Revises Outlook to Positive from Stable

TRIS Rating affirms the company rating of Phatra Securities PLC (PHATRA) at "A-". The rating reflects PHATRA's status as a core subsidiary of the ultimate parent company, Kiatnakin Bank PLC (KK, rated "A-/Positive" by TRIS Rating), with a strong profit...

Archipelago International Signs Letter of Intent with NWP Retail to Develop 14 New Hotels Across Indonesia

Archipelago International , a leading Indonesia-based hospitality management company today announced it has signed a letter of intent with NWP Retail to develop 14 hotel projects in prime locations across Indonesia under three of the company's signature...

Driver Australia Five Trust ABS Assigned Ratings

MELBOURNE (S&P Global Ratings) April 26, 2018--S&P Global Ratings today assigned its ratings to two classes of asset-backed securities (ABS) issued by Perpetual Corporate Trust Ltd. as trustee of Driver Australia five Trust (see list). The notes...

Maryland Transportation Authority 2012C Revenue Bond Rating Reinstated

CENTENNIAL (S&P Global Ratings) April 25, 2018--S&P Global Ratings corrected by reinstating its 'AA+/A-1+' rating, based on the application of joint criteria, and its 'A+' underlying rating on Maryland Transportation Authority's variable-rate...

Related Topics