Fitch rates China State Construction notes BBB-

Fitch Ratings said it assigned a final rating of BBB- to the $500 million 3 1/8% senior unsecured notes due 2018 issued by China State Construction Finance (Cayman) I Ltd. and guaranteed by China State Construction International Ltd.

The final rating is in line with the expected rating assigned Feb. 3, Fitch said.

The notes are rated at the same level as the company's senior unsecured rating of BBB- as they represent direct, unconditional, unsecured and unsubordinated obligations of the company.

The proceeds will mainly be used to repay or refinance existing debt, to finance new and existing projects and for general corporate purposes, the agency said.

The ratings reflect the company's strong legal ties in the financing agreements within the group and strong operational linkage with its parent companies, Fitch said. China State Construction is controlled by holding company, China Overseas Holdings Ltd., which in turn is fully owned by China State Construction Engineering Corp. Ltd.

As the only subsidiary operating in Hong Kong's and Macau's engineering and construction market, China State Construction International is positioned as the group's key operation unit for infrastructure operation and investments in China, the agency said.

The stable outlook reflects an expectation that the company will maintain strong linkages to its parent companies, Fitch added.

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