Fitch lifts China National Bluestar

Fitch Ratings said it upgraded China National Bluestar (Group) Co., Ltd.’s long-term issuer default rating to BBB+ from BBB- and senior unsecured ratings to BBB+ from BBB-.

The outlook is stable.

Fitch also said it upgraded the ratings on the $500 million 3½% senior notes due 2018 and the $500 million 4 3/8% senior notes due 2020 issued by Bluestar Finance Holdings Ltd. to BBB+ from BBB-. Bluestar Finance Holdings Limited is a wholly owned subsidiary of Bluestar and the notes are guaranteed by Bluestar.

The upgrades follow a revision by Fitch of the linkages between Bluestar’s parent, China National Chemical Corp. (ChemChina) and the Chinese sovereign, the agency said.

Following a detailed review of ChemChina’s business, Fitch said it concluded that it is of greater strategic importance to China because of its contribution to China’s crop protection sector, leadership in chemical material supply to national aerospace projects and its role of championing the specialty chemical industry in China, Fitch said.

Bluestar’s ratings remain linked to that of ChemChina due to strong legal, operational and strategic ties between the two entities, the agency said.

© 2015 Prospect News.
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