Fitch rates Chengdu Xingcheng bonds BBB+

Fitch Ratings said it affirmed Chengdu Xingcheng Investment Group Co., Ltd.'s long-term foreign- and local-currency issuer default ratings at BBB+.

The outlook is stable.

Fitch also said it assigned an expected rating of BBB+ to the company's proposed issuance of euro-denominated unsecured bonds.

The proposed bonds will be the direct, unconditional, unsecured and unsubordinated obligation of Chengdu Xingcheng and will rank pari passu with all its other outstanding and future unsecured and unsubordinated obligations, the agency said.

The proceeds will be used for project construction and credit repayment, Fitch said.

The agency said it believes the Chengdu municipality has a strong propensity to provide consistent support under the government-related entities criteria.

The company's major decisions are subject to the local government's approval, the agency said, as it is one of the primary investment and financing vehicles of the municipality and is responsible for the city's infrastructure development.

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