Fitch rates Anhui Transportation notes BBB+

Fitch Ratings said it assigned a final rating of BBB+ to Anhui Transportation Holding Group Co. Ltd.’s $300 million 2 7/8% senior unsecured notes due 2018.

The notes are issued by Anhui Transportation Holding Group (H.K.) Ltd., which is fully owned by Anhui Transportation.

In place of a guarantee, the company has granted a deeds and a cross-border dollar-denominated standby facility to ensure the company has sufficient assets and liquidity to meet its obligations under the guarantee for the proposed dollar-denominated bond, Fitch said.

The bond is rated at the same level as the company’s long-term issuer default rating, the agency said.

Anhui Transportation’s expressways are important parts of the logistic infrastructure of Anhui, a province that is a gateway for inland-bound economic activity due to its strategic location, Fitch said.

The agency also said it expects Anhui to continue to develop its role as a logistics hub because manufacturers based on the coast are increasingly seeking to relocate to central China to trim costs and better serve customers.

© 2015 Prospect News.
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