Fitch rates Baosteel Resources notes A-

Fitch Ratings said it assigned a final A- rating to Baosteel Resources International Co. Ltd.’s $500 million 3 7/8% senior notes due January 2020.

Baosteel Resources is 100% owned by Baosteel Group Corp. and is mainly engaged in trading, investment and development of natural resources, Fitch said.

The notes are issued by Baosteel Resources’ wholly owned subsidiary, Baosteel Financing 2015 Pty Ltd. and are guaranteed by Baosteel Resources.

The proceeds will mainly be used for refinancing, capital expenditure and working capital and other general corporate purposes, Fitch said.

The notes are rated at the same level as Baosteel Group because it has granted an investment- and keepwell-deed and a liquidity support covenant deed to ensure that the issuer, Baosteel Financing 2015 and Baosteel Resources have sufficient assets and liquidity to meet their respective obligations for the proposed notes, the agency said.

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