Fitch lowers Binhai view to stable

Fitch Ratings said it revised Binhai Investment Co. Ltd.'s outlook to stable from negative and affirmed its long-term foreign- and local-currency issuer default ratings at BBB-.

Fitch also said it affirmed Binhai Investment's senior unsecured rating, along with the rating on its $200 million senior unsecured bond due 2018 and $300 million senior unsecured bond due 2020 at BBB-.

The ratings incorporate a two-notch uplift for potential support from its immediate parent, TEDA Investment Holding Co. Ltd., which owns 63% of Binhai, Fitch said, and its ultimate parent, China's Tianjin municipality. TEDA is wholly owned by the Tianjin municipality, the agency noted.

The outlook revision reflects 2017 financial metrics that were better than forecasts, Fitch said, and an expectation that Binhai's leverage will remain lower than 4x through 2021 despite higher capital expenditure assumptions.

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