Fitch rates Shenzhen Expressway bonds BBB

Fitch Ratings said it assigned final ratings of BBB to Shenzhen Expressway Co. Ltd.'s $300 million 2 7/8% bonds due 2021.

The bonds are rated at the same level as the company's long-term foreign-currency issuer default rating because they represent direct, unconditional, unsecured and unsubordinated obligations of the company.

The proceeds will be used to repay debt and for general corporate purposes, including financing road projects, potential acquisitions and investment opportunities, Fitch said.

The agency said it does not expect the financial profile of the company to change significantly in 2017 through 2019 considering the proceeds from the bond issue.

Fitch said it expects traffic growth to be driven by the region's diverse economy and increasing vehicle ownership.

But the average toll may be under slight pressure due to the slower growth of commercial-vehicle tolls from slower economic expansion, the agency explained.

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