...January 15, 2020 HONG KONG (S&P Global Ratings) Jan. 16, 2020--S&P Global Ratings today assigned its 'B' long-term issue rating to the proposed issue of U.S. dollar-denominated senior unsecured notes by China Evergrande Group (B+/Stable/--). The rating is subject to our review of the final issuance documentation. We rate the notes one notch below the issuer credit rating on Evergrande to reflect significant structural subordination risk. As of June 30, 2019, Evergrande's capital structure consisted of about Chinese renminbi (RMB) 118 billion of unsecured debt at the holding company level. The company also has RMB695 billion of debt issued at either the project level or at the level of its subsidiary, Hengda Real Estate Group Co. Ltd., which holds most of its onshore property development business. As such, Evergrande's priority debt ratio is more than 85%, significantly above our notching threshold of 50%. We believe the new issuance will not significantly affect Evergrande's leverage profile...
