Fitch rates ChemChina BBB+

Fitch Ratings said it published the long-term foreign-currency issuer default rating and senior unsecured rating of China National Chemical Corp. (ChemChina) at BBB+, which also is on Rating Watch positive.

ChemChina's rating reflects its strong linkages with the China sovereign due to its key positions in the agriculture and national aerospace sectors, which are strategically important to the government, Fitch said.

The positive watch reflects news that ChemChina has offered to buy Syngenta AG for $43 billion.

The transaction is subject to regulatory clearance in various countries, the agency said.

ChemChina is wholly owned by the State-Owned Assets Supervision and Administration Commission of the State Council (Central Sasac).

ChemChina is rated three notches below China's sovereign rating based on a top-down approach in line with the agency’s parent and subsidiary rating linkage criteria.

The notching reflects ChemChina's strong strategic importance to the government in developing the Chinese chemical industry, Fitch said.

ChemChina is China's largest and the world's seventh largest crop protection producer without consideration of Syngenta, the agency said.

The company has been tasked by the government to enhance China's crop-protection sector, which is crucial to crop output and food safety, both through research and development acquisitions of more advanced foreign producers, Fitch said.

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