Fitch rates Guangzhou Communications notes A-

Fitch Ratings said it assigned a final rating of A- to Guangzhou Communications Investment Group Co., Ltd.’s $400 million 3% senior unsecured notes due 2018.

The proceeds will be used as working capital and for general corporate purposes.

The notes were issued by Express (BVI) 2015 Ltd., and were unconditionally and irrevocably guaranteed by Dynasty Easy Ltd., a wholly owned subsidiary of Guangzhou Communications.

The company granted a keepwell and liquidity support deed and a deed of equity interest purchase undertaking to ensure Dynasty Easy has sufficient assets and liquidity to meet its obligations under the guarantee for the proposed dollar bond, which were Guangzhou Communications’ first issuance of offshore debt, Fitch said.

The bond is rated at the same level as the company’s issuer default ratings given the strong linkage between Dynasty Easy and Guangzhou Communications, the agency said, and because the deeds transfer the ultimate responsibility of payment to Guangzhou Communications.

Any rating action on Guangzhou Communications’ issuer default rating would result in similar rating action on the notes, Fitch said.

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