Fitch affirms Zhongyuan Yuzi

Fitch Ratings said it affirmed Zhongyuan Yuzi Investment Holding Group Co., Ltd.'s long-term foreign and local currency issuer default ratings of A-.

The outlook is stable.

Fitch also affirmed the $300 million 3¾% senior notes issued by Zhongyuan Sincere Investment Co. Ltd. at A-. The bond is unconditionally and irrevocably guaranteed by Yuzi.

Concurrently, Fitch affirmed the expected rating for the proposed dollar senior notes to be issued by Zhongyuan Sincere at A-. The notes will also be unconditionally and irrevocably guaranteed by Yuzi.

The agency said that Yuzi's ratings are credit linked to Fitch's assessment of the credit profile of China's Henan province.

“The linkage is due to 100% ownership by the provincial government, strong government oversight, a solid support record, and the socio-political and financial impact on the government if Yuzi defaults,” the agency said in a news release.

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