Fitch assigns A ratings on Wuhan Metro

Fitch Ratings said it assigned long-term foreign- and local-currency issuer default ratings of A to Wuhan Metro Group Co., Ltd.

The outlook is stable.

Fitch also said it assigned an expected rating of A to the company’s proposed senior unsecured dollar-denominated notes.

The offshore notes will be issued by Wuhan Metro directly, the agency said.

The proposed notes will constitute direct, unconditional, unsubordinated, senior unsecured obligations, Fitch said, and will rank pari passu with other all other present and future unsecured obligations.

The company’s ratings are credit-linked with those of Wuhan, the capital city of China’s prosperous middle province of Hubei, the agency said.

This is reflected in the municipality’s controlling ownership, strong financial oversight of Wuhan Metro, strategic importance of operations and its close financial integration with the city, Fitch said.

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