S&P: Grand China Air (Hong Kong) Ltd.'s US$120 Million CP Program Assigned 'A-1' Foreign-Currency And 'cnA-1' Ratings
Under the program, Grand China Air (Hong Kong) may issue commercial paper up to a maximum aggregate amount of US$120 million. The program is supported by an irrevocable direct-pay letter of credit provided by the New York branch of Bank of China Ltd. (BoC: A/Stable/A-1; cnAA+/cnA-1). The rating on the commercial paper program is subject to our review of the final issuance documentation.
The ratings have been equalized to the short-term counterparty credit rating on BoC to reflect our view that the letter of credit will provide adequate and timely coverage of repayment of commercial papers to be issued under the program.
We view the creditworthiness of BoC's New York branch as the same as that of the bank, according to our criteria. The ratings also reflect the fact that BoC's obligation with regard to this letter of credit is senior unsecured and ranks equally with all other unsecured and unsubordinated obligations of BoC.