Fitch rates AVIC bonds BBB

Fitch Ratings said it assigned an expected BBB rating to AVIC International Holding Corp.’s proposed bonds denominated in U.S. dollars.

The bonds will be issued by AVIC International Finance Ltd. and unconditionally and irrevocably guaranteed by AVIC International, Fitch said.

The notes are rated at the same level as AVIC International’s senior unsecured debt rating as they represent direct, unconditional, unsecured and unsubordinated obligations of the company, the agency said.

Fitch also notched AVIC International’s issuer default rating three levels below the internal assessment of the credit profile of its 62.52% parent, Aviation Industry Corp. of China, reflecting their strong linkages.

AVIC is of very high strategic importance to China’s national defense, the agency said.

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