Fitch rates Zhuhai Huafa securities BBB-

Fitch Ratings said it assigned a rating of BBB- to Zhuhai Huafa Group Co., Ltd.'s planned dollar-denominated senior guaranteed perpetual securities.

The notes will be sold by Huafa 2021 I Co. Ltd., which is an indirect, wholly owned subsidiary of Huafa.

“The proposed notes are credit-linked to, and rated one notch below, Huafa's issuer default rating (IDR). The one-notch difference reflects that, in a stress scenario, Huafa may decide to prioritize other senior unsecured debt when extraordinary support is needed, even though the proposed notes are unsubordinated,” Fitch said in a press release.

The proceeds will be used for refinancing offshore debt.

The outlook is stable.

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