Fitch rates STIG bonds A-

Fitch Ratings said it assigned to long-term foreign- and local-currency issuer default ratings of A-to Sichuan Transportation Investment Group Corp. Ltd. (STIG).

Fitch also assigned an expected A- rating to the company's proposed dollar-denominated senior unsecured bonds.

The outlook is stable.

STIG is a leading infrastructure developer and operator in Sichuan province and engages in expressway, port and channel development, as well as power generation, airport operation and other transportation-related services, Fitch explained.

The proposed notes will be issued by STIG wholly owned subsidiary, Sichuan Communications Overseas Development Co., Ltd., the agency said, and will be unconditionally and irrevocably guaranteed by STIG.

The proceeds will be used to refinance existing indebtedness and for general corporate purposes.

The agency said it believes STIG is strategically important to Sichuan. A default by the company could have moderate socio-political and significant financial implications for the province, Fitch said.

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