Fitch rates Sinochem notes BBB+

Fitch Ratings said it assigned a long-term foreign-currency issuer default rating of BBB+ and a foreign-currency senior unsecured rating of BBB+ to Sinochem Hong Kong (Group) Co., Ltd.

The agency also said it assigned an expected rating of BBB+ to the proposed senior unsecured notes to be issued by Sinochem Overseas Capital Co. Ltd., a wholly owned subsidiary and guaranteed by Sinochem Hong Kong. The rating is contingent upon receipt of final documents.

The rating is equalized to that of its ultimate parent, Sinochem Group, reflecting the high level of ties between the two while Sinochem group's rating benefits from a two-notch uplift reflecting the agency's assessment of strong state support to the group, Fitch said.

The group's unsupported rating is underpinned by its strong position in China's agriculture sector, well-positioned real estate business, rapidly growing energy business and moderate financial metrics, the agency said.

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