Fitch assigns A+ to Hengjian, notes

Fitch Ratings said it published Guangdong Hengjian Investment Holding Co., Ltd.’s long-term foreign- and local-currency issuer default ratings of A+ with a stable outlook.

The agency also assigned an expected A+(EXP) rating to Guangdong Hengjian’s proposed senior unsecured dollar-denominated notes, to be issued by its indirect, wholly owned subsidiary, Hengjian International Investment Ltd. Guangdong Hengjian will provide an unconditional and irrevocable guarantee to the proposed offshore notes.

Proceeds will be used for general corporate purposes.

The note is expected to be a bullet bond.

Fitch said the ratings of Guangdong Hengjian are credit linked to those of Guangdong province. This reflects its 100% state ownership, strong provincial financial oversight and its strategic importance to the province. These factors result in a high likelihood of extraordinary support, if needed.

Therefore, Guangdong Hengjian is classified as a credit-linked public sector entity under Fitch's rating criteria, the agency explained.

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