Fitch rates CDB Leasing notes A+

Fitch Ratings said it assigned an expected rating of A+ to China Development Bank Financial Leasing Co., Ltd.'s (CDB Leasing) proposed senior unsecured dollar notes, which will be issued by CDBL Funding 2 under CDB Leasing's $3 billion medium-term note program.

CDBL Funding 2 is an offshore special purpose vehicle established by Metro Excel, the core operating platform directly wholly owned by CDB Leasing for its overseas non-aircraft leasing business domiciled in Hong Kong, the agency said.

The ultimate parent of both Metro Excel and CDB Leasing is China Development Bank, Fitch said.

The proposed notes will be supported by a guarantee from Metro Excel and benefit from a keepwell and asset-purchase deed undertaking by CDB Leasing, the agency said.

The proceeds will be used for working capital and general corporate purposes, Fitch said.

The expected rating on the proposed notes is driven by an assessment of an extremely high probability of support from CDB Leasing and its ultimate parent bank, the agency said.

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