Fitch assigns China Hongqiao, notes BB

Fitch Ratings said it assigned long-term foreign-currency and local-currency issuer default ratings of BB to China Hongqiao Group Ltd., along with foreign-currency and local-currency senior unsecured ratings of BB and an expected BB rating to the company's proposed dollar-denominated and offshore yen-denominated senior unsecured notes.

The outlook is positive.

The proceeds will be used to expand capacity at its aluminum production and captive power plant, as well as for working capital and general corporate purposes, Fitch said.

The ratings reflect the company's competitive cost advantage over other major Chinese aluminum producers, particularly in alumina and electricity cost, which together accounts for about 75% of its aluminum production cost, the agency said.

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