Fitch rates Bocom notes A

Fitch Ratings said it assigned a final rating of A to Azure Orbit II International Finance Ltd.’s $385 million 3 1/8% senior unsecured notes due 2020 and €100 million floating-rate senior unsecured notes due 2018.

Azure Orbit II is an offshore special purpose vehicle managed by Bank of Communications Financial Leasing Co., Ltd. (Bocom Leasing), the wholly owned leasing arm of Bank of Communications Co., Ltd. (Bocom), Fitch said.

Bocom Leasing is strongly integrated with Bocom and is a key subsidiary providing financial leasing services for the bank’s customers, the agency said.

The proceeds will be used for on-lending to Bocom for general corporate purposes, including investments in Bocom Leasing, the agency said.

Bocom Leasing’s long-term issuer default rating of A and short-term issuer default rating of F1 are unaffected.

The ratings of Bocom also are unaffected, including its long-term issuer default rating of A, short-term issuer default rating of F1 and viability rating of BB-.

The outlook remains stable.

The company is among the largest lessors in China with total assets of ¥114 billion as of year-end 2014, the agency said.

The notes have the benefit of a deed of guarantee given by Bocom’s Macau Branch, Fitch said.

The notes represent direct, general, unconditional and unsecured obligations of Bocom by virtue of the deed of guarantee given by the bank’s Macau Branch and rank pari passu with all other present and future unsecured obligations of the branch, Fitch said.

© 2015 Prospect News.
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