Fitch rates Bocom Leasing HK A

Fitch Ratings said it assigned long-term and short-term issuer default ratings of A and F1 to Bocom Leasing Development Hong Kong Co. Ltd. (Bocom Leasing HK).

The outlook is stable.

Bocom Leasing HK is a wholly owned offshore subsidiary of Bank of Communications Financial Leasing Co., Ltd., Fitch explained.

Bocom Leasing holds the offshore subsidiary through its 100% controlled subsidiary, Bank of Communications Aviation and Shipping Financial Leasing Co., which is domiciled in China's Shanghai free trade zone, the agency said.

Bocom Leasing HK functions as the exclusive treasury platform for the offshore leasing operations of Bocom Leasing, Fitch said.

The ratings reflect the extremely high probability of support from Bocom and Bocom Leasing to Bocom Leasing HK, the agency said.

Bocom Leasing HK is highly integrated into Bocom Leasing's operations, Fitch said, and Bocom Leasing has full managerial and operational control over the company.

A default by Bocom Leasing HK would create significant reputational risk for Bocom Leasing and its parent bank, the agency said.

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