Fitch: Franshion notes BBB-

Fitch Ratings said it assigned a final rating of BBB- to Franshion Properties (China) Ltd.'s $500 million 4.7% notes due 2017.

The assignment of the final rating follows the receipt of documents conforming to information already received and the final rating is in line with the expected rating assigned Oct. 18, Fitch said.

The notes are rated at the same level as Franshion's ratings as they represent direct, unconditional, unsecured and unsubordinated obligations of the company, the agency said.

The ratings reflect the company's status as an indirect state-owned Chinese property company and expected further improvement in rental income as demand for office properties in China remains strong, Fitch said.

The ratings are constrained by an increase in its leverage and interest expense due to borrowings for its Changsha project, the agency said.

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