Fitch: Tianjin Binhai bond A-

Fitch Ratings said it assigned A- long-term foreign- and local-currency issuer default ratings to Tianjin Binhai New Area Construction & Investment Group Co., Ltd.

The outlook is stable.

Fitch also said it assigned an expected A- rating on the proposed dollar-denominated senior unsecured bond to be issued by Zhaohai Investment (BVI) Ltd.

The bond will be unconditionally and irrevocably guaranteed by Binhai Jiantou (Hong Kong) Development Ltd., a wholly owned subsidiary of Tianjin Binhai New Area.

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

The company has granted deeds of support to ensure the company has sufficient assets and liquidity to meet its obligations under the guarantee for the proposed bond, the agency said.

The bond is rated at the same level as Tianjin Binhai New Area’s issuer default ratings, given the strong linkage between Binhai Jiantou (Hong Kong)and Tianjin Binhai New Area, Fitch said.

Tianjin Binhai New Area’s ratings are credit linked to Tianjin municipality, the agency said.

This reflects the Tianjin municipality’s 100% ownership and strong oversight of the company’s financial results and the strategic importance of the company’s operation to the municipality, Fitch said.

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