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Bulletin: Central China Real Estate Ltd. Rating Not Immediately Affected By Covenant Breaches And Solicitation Of Consent Mar 12 Product Image

Bulletin: Central China Real Estate Ltd. Rating Not Immediately Affected By Covenant Breaches And Solicitation Of Consent Mar 12

  • ID: 2083775
  • March 2012
  • Region: China
  • Standard & Poors

Abstract
HONG KONG (Standard & Poor's) March 7, 2012--Standard & Poor's Ratings Services today said its rating on Central China Real Estate Ltd. (BB-/Stable/--; cnBB+/--) is not immediately affected by the company's solicitation of consent to waive certain administrative covenant breaches on its US$300 million senior unsecured notes due 2015. In our view, these breaches are technical in nature and bondholders should have limited incentives to exercise their right to accelerate the repayment of the bond. This is because the company is performing satisfactorily and has a good level of surplus cash. We expect its financial ratios for 2011 to comply with the bond's financial covenants. Nevertheless, in the low likelihood that bondholders call for the acceleration of repayment of the...

Companies mentioned in this report are: Central China Real Estate Ltd.
Action: Bulletin

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research type: News
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