Fitch puts Sinofert on watch

Fitch Ratings said it placed Sinofert Holdings Ltd.’s long-term foreign- and local-currency issuer default ratings and senior unsecured rating of A- on rating watch negative.

The rating action follows Sinofert’s Jan. 5 announcement its parent, Sinochem Hong Kong (Group) Co. Ltd. has agreed to transfer its entire 52.65% Sinofert stake to a 100%-owned subsidiary of China National Chemical Corp. for $1.

Sinofert was previously rated one notch lower than its parent Sinochem HK, reflecting their strong linkages in line with Fitch’s parent and subsidiary rating linkage criteria. The RWN reflects the potential change in Sinofert’s ultimate parent and the pending final corporate structure, which may or may not affect the Sinofert’s business and financial profile.

Fitch said it expects to resolve the RWN upon completion of the transaction, which may take longer than six months.

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