Fitch rates Bank of Communications notes A

Fitch Ratings said it assigned an expected rating of A to Azure Orbit II International Finance Ltd.’s proposed long-term senior unsecured notes.

Azure Orbit II is an offshore special purpose vehicle managed by Bank of Communications Financial Leasing Co., Ltd. (Bocom Leasing), the wholly owned leasing arm of Bank of Communications Co., Ltd.

The company is among the largest lessors in China with total assets of ¥114 billion as of year-end 2014, Fitch said.

The notes will have the benefit of a deed of guarantee given by Bank of Communication’s Macau Branch in support of Azure Orbit II’s medium-term notes program, the agency said.

The proceeds will be on-lent to the bank for general corporate purposes, including investments in Bocom Leasing, Fitch said.

Bocom Leasing is strongly integrated with the bank and is a key subsidiary providing financial leasing services for the bank’s customers, the agency said.

Fitch said it views the Macau branch as part of the same legal entity and it plays an important role in developing the bank’s overseas businesses.

Bocom Leasing’s long-term issuer default rating of A and short-term issuer default rating of F1 are unaffected by this action.

The outlook remains stable.

The bank’s ratings also are unaffected, including its long-term issuer default rating of A, short-term issuer default rating of F1 and viability rating of BB-.

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