Fitch rates Huarong notes A, BBB

Fitch Ratings said it assigned Huarong Finance 2019 Co., Ltd.’s proposed senior unsecured notes an A rating and its subordinated perpetual notes a BBB rating.

Huarong Finance 2019 is wholly owned by China Huarong International Holdings Ltd., which will guarantee the notes. China Huarong International is wholly owned by China Huarong Asset Management Co., Ltd.

The A rating on the notes considers the strong relationship between China Huarong International and its parent, Fitch said.

“The proposed subordinated perpetual securities’ rating is notched down after factoring in the internal assessment of Huarong International. The notching reflects the perpetual nature, subordinated structure, and incremental risk to China Huarong’s issuer default rating,” the agency said in a press release.

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