Fitch: Huarong Finance notes A

Fitch Ratings said it assigned an expected rating of A to Huarong Finance II Co., Ltd.'s proposed issue of dollar-denominated senior unsecured notes under its $11 billion medium-term note program.

Huarong Finance II is wholly owned by China Huarong International Holdings Ltd. (Huarong International), which is wholly owned by China Huarong Asset Management Co., Ltd. (China Huarong).

China Huarong is rated one notch below the Chinese sovereign rating of A+, reflecting the company's state ownership and strong control by the authorities, Fitch said.

China Huarong's strategic ties with the state mean there is a strong likelihood the company would receive extraordinary support from the sovereign, if needed, the agency said.

The notes under the program are unconditionally and irrevocably guaranteed by Huarong International, the agency explained.

The notes will be senior unsecured obligations of Huarong International, Fitch said, and also rank pari passu with all other senior unsecured obligations of Huarong International.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.