Fitch rates CDB Leasing notes A+

Fitch Ratings said it assigned China Development Bank Financial Leasing Co., Ltd.'s (CDB Leasing, A+/stable) proposed senior unsecured dollar-denominated notes – to be issued by CDBL Funding 2 under CDB Leasing's $3 billion medium-term note program – an expected rating of A+(EXP).

CDBL Funding 2 is an offshore special-purpose vehicle established by Metro Excel Ltd., the primary overseas platform for CDB Leasing's non-aircraft leasing business. Metro Excel was established in Hong Kong in 2014 and is wholly owned by CDB Leasing through CFAS Service Ltd. The ultimate parent of both Metro Excel and CDB Leasing is China Development Bank (CDB, A+/stable).

The proposed notes, to be listed on the Hong Kong Stock Exchange, will be supported by a guarantee from Metro Excel and benefit from a keepwell and asset purchase deed undertaking by CDB Leasing.

Proceeds will be used for working capital and general corporate purposes.

Fitch said the expected rating on the proposed notes is underpinned by its expectation of an extremely high level of support from CDB Leasing and Metro Excel, with the benefit of a guarantee from Metro Excel and the keepwell structure and asset repurchase agreement provided by CDB Leasing.

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