Fitch rates Guangzhou Industrial bonds A-

Fitch Ratings said it assigned an expected rating of A- to Guangzhou Industrial Investment Fund Management Co., Ltd.'s (Sfund) proposed senior unsecured dollar-denominated bonds.

The proposed offshore bonds will be issued by Vertex Capital Investment Ltd., a wholly owned subsidiary of Sfund.

The proceeds will be used for refinancing and other general corporate purposes.

Sfund will provide an unconditional and irrevocable guarantee to the proposed bonds, Fitch said.

The proposed offshore bonds are expected to be rated at the same level as Sfund's issuer default rating as they represent unsubordinated and unsecured obligations of Sfund and rank at least pari passu with all Sfund's other present and future unsecured obligations, the agency said.

The company is a wholly owned subsidiary of Guangzhou City Construction Investment Group Co., Ltd., Fitch said, and ultimately fully owned by the Guangzhou municipal government.

The ratings reflect the company's ultimate ownership by the Guangzhou municipality, the agency added.

Fitch also said it believes the municipal government has tight control over Sfund's government-directed investments.

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