Fitch lowers Tianjin GREs

Fitch Ratings said it downgraded the long-term foreign- and local-currency issuer default ratings of various Tianjin-based government-related entities.

The outlooks are negative.

Fitch also downgraded the senior unsecured ratings on the bonds issued by these GREs.

The downgrades follow a similar recent downgrade on the Tianjin municipal government, the agency said.

The municipality's ratings were downgraded, but the links it shares with these entities is unchanged, Fitch noted.

The downgrades include Tianjin Infrastructure Construction & Investment (Group) Co., Ltd.'s long-term foreign-currency issuer default rating to A- from A, long-term local-currency issuer default rating to A- from A and the rating on its $500 million 2¾% senior unsecured notes due 2019 to A- from A.

Tianjin Rail Transit Group Co., Ltd.'s long-term foreign-currency issuer default rating was downgraded to A- from A, along with its long-term local-currency issuer default rating to A- from A.

Rail Transit International Investment Co. Ltd.'s $200 million 2½% senior unsecured notes due 2019 were downgraded to A- from A and $300 million 2 7/8% senior unsecured notes due 2021 were downgraded to A- from A.

Rail Transit International Development Co. Ltd.'s €400 million 1 5/8% guaranteed bonds due 2022 were downgraded to A- from A.

Tianjin Binhai New Area Construction and Investment Group Co., Ltd.'s long-term foreign-currency issuer default rating were downgraded to BBB+ from A-, along with its long-term local-currency issuer default rating to BBB+ from A-.

Zhaohai Investment (BVI) Ltd.'s $500 million 4% senior unsecured notes due 2020 were downgraded to BBB+ from A-.

Tianjin Free Trade Zone Investment Holding Group Co., Ltd.'s long-term foreign-currency issuer default rating was downgraded to BBB from BBB+, along with its long-term local-currency issuer default rating to BBB from BBB+.

Hongkong Baorong Development Ltd.'s $230 million 6¼% senior unsecured notes due 2021 were downgraded to BBB from BBB+.

Tianjin is dealing with slowing economic growth and counter-cyclical fiscal measures, including tax cuts, the agency said.

The negative outlook primarily highlights the municipality's weakening credit profile associated with rising indebtedness, which leads to a longer payback period over the coming years, Fitch said.

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