Fitch rates Xinjiang Zhongtai notes BB+

Fitch Ratings said it assigned an expected rating of BB+ to Xinjiang Zhongtai (Group) Co., Ltd.'s proposed senior unsecured dollar-denominated notes.

The proposed notes will be directly issued by Xinjiang Zhongtai and are rated at the same level as its issuer default rating, Fitch said.

The proposed notes will rank pari passu with all the company's other unsecured and unsubordinated obligations.

The proceeds will be used for domestic and overseas projects and repayment of existing onshore debt, Fitch said, as well as other general corporate and working capital purposes.

The ratings are assessed under the agency's government-related entities rating criteria, the agency said.

Fitch said it believes the government has a strong incentive to provide extraordinary support to Xinjiang Zhongtai, if needed.

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