Fitch ups China Shandong Hi-Speed

Fitch Ratings said it upgraded China Shandong Hi-Speed Financial Group Ltd.'s (CSFG) long-term foreign- and local-currency issuer default ratings to A- from BBB+.

Fitch also boosted to A- from BBB+ a tranche from the medium-term note program with a keepwell and equity interest purchase undertaking from Shandong Hi-Speed Group Co., Ltd. and guarantee from CSFG - a drawdown of $200 million of 3.95% senior unsecured bond due May 2024. The notes were issued by CSFG's wholly owned subsidiary, Coastal Emerald Ltd.

The upgrade follows the reassessment under the updated parent and subsidiary linkage rating criteria, published on Dec. 1, the agency said.

In March CSFG reported plans to buy Beijing Enterprises Clean Energy Group. The transaction and board reorganization were completed on May 19. CSFG became BECE's largest shareholder, holding 43.45% shares of BECE, and took control.

Fitch also removed all the ratings from under criteria observation, on which they were placed on Dec. 7, and put the ratings on rating watch evolving as the acquisition may lead to stronger linkages with Shandong Hi-Speed or dilute them.

“Fitch expects to resolve the RWE within six months following the revision of additional information from CSFG,” the agency said in a press release.

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