Fitch rates Taizhou Huaxin notes BB+

Fitch Ratings said it assigned an expected rating of BB+ Taizhou Huaxin Pharmaceutical Investment Co., Ltd.'s proposed dollar-denominated senior unsecured notes.

The notes will be issued by Huaxin Pharmaceutical (Hong Kong) Co., Ltd., a wholly owned subsidiary of Taizhou Huaxin, which will provide an unconditional and irrevocable guarantee to the proposed notes.

The notes represent the direct, unsubordinated, unconditional and unsecured obligations of Huaxin Pharmaceutical (Hong Kong) and shall at all times rank pari passu with all other present and future obligations, Fitch said.

The proceeds will be used for working capital and other general corporate purposes, the agency said.

The ratings are credit linked, but not equalized with those of Taizhou municipality in eastern China, Fitch said.

The link reflects the Taizhou government's ownership of Taizhou Huaxin and its strong level of control and oversight, the agency said, as well as the strategic importance of the company to the municipality and the development zone in which it operates.

Any changes to the credit assessment of Taizhou municipality will be mirrored in the company's rating, Fitch noted.

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