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Fitch Ratings assigns final rating to Yangzhou Urban notes.

Hong Kong: Fitch Ratings, a nationally recognized statistical rating organization (NRSRO) designated by the U.S. Securities and Exchange Commission, assigned a final rating of 'BBB' to Yangzhou Urban Construction State-owned Assets Holding (Group) Co., Ltd's (YUCH, BBB/Stable) USD300 million 4.375% senior unsecured notes due 2020.

The notes are directly issued by YUCH and rank pari passu with all YUCH's other present and future unsecured and unsubordinated obligations. Proceeds will be used for general corporate purposes. The assignment of the final rating follows the receipt of documents conforming to information already received. The final rating is in line with the expected rating assigned on 7 December 2017.

YUCH's ratings are credit linked to, but not equalised with, those of Yangzhou municipality in China's eastern Jiangsu province. This reflects the municipality's 100% ownership of the entity, strong government oversight of its financials and the strategic importance of the entity's operation to the municipality. These factors result in a high likelihood of extraordinary support, if needed. Therefore, YUCH is classified as a credit-linked public-sector entity under Fitch's criteria.

Yangzhou ranked among the top 40 of more than 300 Chinese cities by gross regional product (GRP) in 2016. Yangzhou's GRP growth was higher than that of Jiangsu province as well as the national average during the past decade. The municipality also reported a strong fiscal performance, has a diversified socio-economic profile and a strategic location in the centre of Jiangsu province. The strength is mitigated by the contingent liabilities arising from its public-sector entities.

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Publication:Daily the Pak Banker (Lahore, Pakistan)
Date:Mar 11, 2018
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