Fitch rates Wuxi notes BBB+

Fitch Rating said it published long-term foreign- and local-currency issuer default ratings of BBB+ on Wuxi Construction and Development Investment Co., Ltd.

The outlook is stable.

Fitch also said it assigned an expected rating of BBB+ to Wuxi’s proposed senior unsecured dollar-denominated notes.

The proceeds of the proposed issue will be used for the company’s infrastructure construction business, repayment of outstanding debt and general corporate purposes, Fitch said.

The notes will be issued by Xihui Haiwai I Investment Holdings Co., Ltd. and are unconditionally and irrevocably guaranteed by Xihui International Co., Ltd., a wholly owned subsidiary of Wuxi, the agency explained.

The notes will be senior unsecured obligations of Xihui International and rank pari passu with all of its other senior unsecured obligations, Fitch said.

In place of a guarantee, the company has granted a support deeds to ensure that Xihui International has sufficient assets and liquidity to meet its obligations under the guarantee for the notes, the agency said.

The notes are rated at the same level as Wuxo’s issuer default ratings given the strong link between Xihui International and Wuxi and because of the deeds that transfer the ultimate responsibility of payment to Wuxi, Fitch said.

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