Fitch ups Zhangzhou Jiulongjiang

Fitch Ratings said it upgraded Zhangzhou Jiulongjiang Group Co., Ltd.'s long-term foreign- and local-currency issuer default ratings to BBB- from BB+. Fitch also upgraded its $500 million of senior unsecured notes to BBB- from BB+.

“The upgrade reflects Fitch's view that there is a stronger incentive for the government to support Jiulongjiang, as more than 95% of the issuer's debt was used to fund the city's urban-infrastructure development, raising the financial implications of a default. Jiulongjiang also has pharmaceutical, bearing-producing and petrochemical businesses, which expand its funding sources beyond a district-focused operation, widening the significance of a default to the city instead of a narrow area within Zhangzhou,” Fitch said in a press release.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.