Fitch pulls Hangzhou from evolving watch

Fitch Ratings said it affirmed Hangzhou Shangcheng District Urban Construction & Comprehensive Development Co., Ltd.'s (HSUC) long-term foreign- and local-currency issuer default ratings at BBB- and removed its ratings from rating watch evolving.

The agency also affirmed the BBB- rating on the U.S. dollar senior unsecured bonds issued by HSUC's subsidiary, Zhejiang Baron (BVI) Co. Ltd. The bonds are guaranteed by HSUC.

“The rating affirmation and the resolution of the rating watch evolving reflect the administrative change in the sponsor after the merger of the Jianggan and Shangcheng districts by the Hangzhou municipality to form a new Shangcheng district in 2021, which resulted in the reorganization of both districts' existing government-related entities (GREs). HSUC is now grouped under Hangzhou Shangcheng District Urban Construction Investment Group Co. Ltd. (HSCI, BBB/stable), which was set up by the Shangcheng district after the reorganization. HSUC was previously under the direction of the old Jianggan district's finance bureau,” Fitch said in a press release.

The outlook is stable.

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