Fitch rates Yancheng Oriental bonds BB+

Fitch Ratings said it assigned a final rating of BB+ Yancheng Oriental Investment & Development Group Co., Ltd.'s $300 million 5.15% senior unsecured bonds due 2019.

The bonds are issued by a wholly owned subsidiary of Yancheng Oriental, Oriental Capital Co. Ltd. and are unconditionally and irrevocably guaranteed by Dongfang Investment (Holdings) Corp. Ltd., also a wholly owned subsidiary of Yancheng Oriental, Fitch said.

The bonds are senior unsecured obligations of Oriental Capital and rank at all times pari passu with its other present and future unsecured and unsubordinated obligations, the agency said.

In place of a guarantee, Yancheng Oriental has granted a keepwell and liquidity support deeds to ensure that Dongfang Investment has sufficient assets and liquidity to meet its obligations under the guarantee for the bonds, Fitch said.

The bonds are rated at the same level as Yancheng Oriental's issuer default rating due to the strong link between Yancheng Oriental and Oriental Capital, the agency said.

The ratings are credit-linked, but not equalized with the creditworthiness of Yancheng municipality, which is located in the northeastern Jiangsu province in China, Fitch said.

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