S&P Global Ratings said it considers convertible preference shares (CPS) as debt in assessing companies' financials, as their conversion to shares largely factors in market conditions and investor discretion, according to a Thursday release.

The hybrid instruments are gaining traction among Asia-Pacific unicorns, especially since they can also have equity-like features for these early-stage, fast-expanding companies, S&P credit analyst Shawn Park said.

CPS investors may prefer growth over fast repayments, Park said, adding that the lack of quick cash payouts for the instruments makes them important in assessing a company's credit rating.