Fitch rates Jiangsu NewHeadLine notes BB+

Fitch Ratings said it assigned an expected BB+ rating to Jiangsu NewHeadLine Development Group Co., Ltd.'s proposed senior unsecured dollar-denominated notes.

The notes will be issued Jiangsu NewHeadLine’s wholly owned subsidiary Zhiyuan Group (BVI) Co., Ltd., Fitch said, and will be unconditionally and irrevocably guaranteed by HK Zhiyuan Group Ltd., also a wholly owned subsidiary of Jiangsu NewHeadLine.

The notes will be senior unsecured obligations and rank pari passu with the group’s other obligations, the agency said.

Jiangsu NewHeadLine has granted deeds of equity interest purchase undertaking in place of a guarantee to ensure its subsidiary 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 Jiangsu NewHeadLine’s issuer default rating due to strong linkages and keepwell and liquidity support deeds, the agency said.

The ratings also are credit-linked to Lianyungang municipality due to the 100% state-ownership of Jiangsu NewHeadLine and strong municipal oversight, Fitch added.

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