Fitch rates Sinochem notes A-

Fitch Ratings said it assigned an expected A- rating to Sinochem Offshore Capital Co. Ltd.'s proposed offshore yuan notes due 2017.

The notes are issued under its $3 billion medium-term note program.

Sinochem Offshore is a wholly owned subsidiary of Sinochem Hong Kong (Group) Co. Ltd., which is providing an unconditional and irrevocable guarantee for the medium-term note program.

The proposed offshore yuan notes are rated at the same level as Sinochem Hong Kong's senior unsecured rating to reflect this guarantee, Fitch said.

Sinochem Hong Kong's parent, Sinochem Group, has strong linkage to the Chinese state due to the importance of its agrochemical operations, especially in seeds, the agency said.

The group also exhibits strong state linkages in its rubber and other chemical operations, the agency said.

Sinochem's agrochemical operations are the only horizontally and vertically integrated ones in China with market coverage of 95%, Fitch added.

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