Fitch rates Huai’an notes BB+

Fitch Ratings said it assigned long-term foreign- and local-currency issuer default ratings of BB+ to Huai'an Development Holdings Co., Ltd.

The outlook is stable.

Fitch also said it assigned an expected BB+ rating to the company's proposed senior unsecured dollar-denominated notes.

The proceeds will be used for general corporate purposes, the agency said.

The notes will be issued by Xiangyu Investment (BVI) Co., Ltd. and are unconditionally and irrevocably guaranteed by Hong Kong Xiangyu Investment Group Co., Ltd., a wholly owned subsidiary of Huai’an, Fitch explained.

The notes will be senior unsecured obligations of Xiangyu Investment and rank pari passu with all of its other senior unsecured obligations, the agency added.

Huai’an has granted support deeds to ensure Xiangyu Investment has sufficient assets and liquidity to meet its obligations under the guarantee for the notes, Fitch said.

The notes are rated at the same level as Huai’an’s issuer default ratings, given its strong link with Xiangyu Investment and due to the deeds, the agency said.

Huai’an is expected to maintain its reputation and credit profile in the international offshore market, Fitch said, and is unlikely to default on its offshore obligations.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.