Fitch Ratings affirms Qingdao City Construction Investment Group's ratings at 'BBB+'.
Hong Kong: Fitch Ratings, a nationally recognized statistical rating organization (NRSRO) designated by the U.S. Securities and Exchange Commission, affirmed Qingdao City Construction Investment Group's (QCCI) Long-Term Foreign- and Local-Currency Issuer Default Ratings at 'BBB+'.
With Outlook Stable, Fitch has assigned final ratings of 'BBB+' to QCCI's USD300 million 3.75% bonds due 2020 and USD500 million 4.25% bonds due 2022. The bonds are issued by Hongkong International (Qingdao) Company Limited (HKIQD), a wholly-owned subsidiary of QCCI. QCCI has provided a keepwell deed, a deed of equity interest purchase undertaking and an irrevocable cross-border US dollar stand-by facility agreement in support of the bonds.
HKIQD has sufficient funds to honour its debt obligations. The agency also believes QCCI intends to maintain its reputation and credit profile in the international offshore market, and is unlikely to default on offshore obligations. Additionally, a default by HKIQD could have significant negative repercussions on QCCI for any future offshore funding.
The assignment of the final ratings follows the receipt of documents conforming to information already received. The final ratings are in line with the expected ratings assigned on 16 November 2017. QCCI's ratings are credit linked to, but not equalised with, Fitch's internal assessment of the creditworthiness of China's Qingdao Municipality. Fitch's view is based on QCCI's 100% ownership by the municipality while registered as a state-owned limited liability company under Chinese company law; the municipality's strong oversight of the company's finances and operations; and the fiscal support it has received from the municipality. These factors result in a strong likelihood the municipal government would extend extraordinary support to QCCI, if needed. Therefore, QCCI is classified as a credit-linked public-sector entity under our criteria.
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|Publication:||Daily the Pak Banker (Lahore, Pakistan)|
|Date:||Apr 10, 2018|
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