Bangkok--23 Apr--Standard & Poor's
HONG KONG (Standard & Poor's) April 23, 2015--Standard & Poor's RatingsServices today assigned its 'BBB' long-term foreign currency and 'cnA'long-term Greater China regional scale ratings to the proposed Chineserenminbi benchmark size series 1 and series 2 notes by Ocean Wealth Ltd., a
special-purpose entity. Both the series of pass-through notes are secured andbacked by loan repayments from the respective end borrowers. These cashreceipts are prefunded 15 business days in advance and China Orient AssetManagement (International) Holding Ltd. (COAMI: BBB/Stable/A-2; cnA/cnA-2)guarantees the prefunding of the loan repayments. Our ratings on the notes aresubject to our review of the final issuance documentation.
We equalize the ratings on the notes with that on COAMI. In our view, theguarantees by COAMI are irrevocable, unconditional, and timely, and thereforequalify for rating substitution treatment. The company's obligations undereach of the loan guarantees shall, save for such exceptions as may be providedby applicable legislation, at all times rank equally with all its otherpresent and future unsecured and unsubordinated obligations.
Under the guarantees, the issuer can raise a demand for payment within threebusiness days of the prefunding date if the end borrower doesn't pay theprefunding in full. The demand will trigger the guarantee whereby COAMI haseight business days to make-whole the prefunding account. This period leavesfour days for the paying agent to make the note payments to investors, atransaction which takes a maximum of three business days.
The proceeds from the series 1 notes will be on-lent to Long Profit Group Ltd.and those from the series 2 notes will be on-lent to Richtex Holdings Ltd.Both the end borrowers will use the proceeds for general corporate purposes,repaying their existing loans, and financing other operating activities. The
end borrowers are partly owned indirect subsidiaries of COAMI.