Fitch upgrades AVIC International

Fitch Ratings said it upgraded AVIC International Holding Corp.’s long-term foreign- and local- currency issuer default ratings to A- from BBB+.

The outlook is stable.

The company's senior unsecured rating and the outstanding senior unsecured notes issued by AVIC International Finance & Investment Ltd. and AVIC International Finance Ltd. were also upgraded to A- from BBB+.

All ratings were removed from rating watch positive, where they were placed on Nov. 29.

Fitch said the upgrade was driven by an upgrade in its internal assessment of the consolidated credit profile of AVIC International's immediate parent, Aviation Industry Corp. of China (AVIC), under the Government-Related Entities Rating Criteria released on Feb. 7.

“AVIC International is 62.52% owned by AVIC. The company is a core unit of AVIC and responsible for the majority of AVIC's import and export businesses and operates the majority of AVIC's subcontracting and outsourcing business,” Fitch said in a news release.

“AVIC International is a significant link between China and the global aviation industry as AVIC monopolizes the domestic market.

“In addition to its financial contribution, the subsidiary is also indispensable to AVIC's aviation operations.”

© 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.