Fitch: HK Zhiyuan notes BB+

Fitch Ratings said it assigned a final rating of BB+ to Zhiyuan Group (BVI) Co., Ltd.’s $200 million 6.2% senior unsecured notes due 2019.

The assignment of the final rating follows the receipt of documents that conform to information already received and is in line with the expected rating assigned Jan. 3, 2015, Fitch said.

The notes are unconditionally and irrevocably guaranteed by HK Zhiyuan Group Ltd., a wholly owned subsidiary of Jiangsu NewHeadLine Development Group Co., Ltd., the agency said.

The notes will be senior unsecured obligations of HK Zhiyuan and rank pari passu with all other obligations of that company, Fitch said.

The proceeds will be used primarily onshore to fund the Jiangsu NewHeadLine’s city infrastructure development projects, refinance its indebtedness, replenish working capital and general corporate purposes, the agency said.

The notes are rated at the same level as Jiangsu NewHeadLine’s issuer default rating given the strong link between the companies, Fitch said.

The ratings also are credit-linked to Lianyungang municipality, which is located in China’s northeastern Jiangsu province, the agency added.

© 2015 Prospect News.
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