...February 27, 2020 HONG KONG (S&P Global Ratings) Feb. 28, 2020--S&P Global Ratings today assigned its 'B-' long-term issue rating to the proposed U.S. dollar-denominated senior unsecured notes by Xinjiang Guanghui Industry Investment (Group) Co. Ltd. (Guanghui; B/Negative/--). The rating is subject to our review of the final issuance documentation. The company plans to use the proceeds to refinance its offshore US$300 million senior unsecured notes due March 2020. We rate the proposed notes one notch below the issuer credit rating on Guanghui because the debt is significantly subordinated to other debt in the company's capital structure. As of June 30, 2019, Guanghui's capital structure consists of Chinese renminbi (RMB) 20.5 billion in secured debt and about RMB76.4 billion in unsecured debt held at operating subsidiaries, and RMB19.5 billion in unsecured debt at the parent level. Guanghui's priority debt ratio is about 83%, above our notching-down threshold of 50%....
