...HONG KONG (S&P Global Ratings) March 22, 2017--S&P Global Ratings today assigned its 'B-' long-term issue rating and 'cnB+' long-term Greater China regional scale rating to a proposed issue of U.S. dollar-denominated senior unsecured notes by Xinjiang Guanghui Industry Investment (Group) Co. Ltd. (Guanghui: B/Stable/--; cnBB-/--). The rating on the notes is one notch below the corporate credit rating on Guanghui, reflecting our opinion that the proposed notes are structurally subordinated to priority obligations at the operating entities. The ratings on the notes are subject to our review of the final issuance documentation. We expect Guanghui to use the issuance proceeds for overseas investment and general corporate purposes. The rating on Guanghui reflects the company's operations in China's highly competitive and fragmented auto retail industry, and its exposure to the volatile energy and cyclical property segments. We also expect Guanghui's financial leverage to remain high due to the...
