Fitch rates Wuxi notes BBB+

Fitch Ratings said it assigned a final rating of BBB+ to Wuxi Construction and Development Investment Co., Ltd.'s $300 million 3¼% notes due 2019.

The proceeds will be used for Wuxi's infrastructure construction business, repayment of outstanding debt and general corporate purposes, the agency said.

The notes were issued by Xihui Haiwai I Investment Holdings Co., Ltd., Fitch said, and are unconditionally and irrevocably guaranteed by Xihui International Co., Ltd., a wholly owned subsidiary of Wuxi.

The notes are senior unsecured obligations of Xihui International and rank pari passu with all of its other senior unsecured obligations, the agency said.

In place of a guarantee, Wuxi granted support deeds to ensure that Xihui International has sufficient assets and liquidity to meet its obligations under the guarantee for the notes, Fitch explained.

The notes are rated at the same level as Wuxi’s issuer default ratings given its strong link with Xihui International and due to the deeds, the agency said.

Wuxi is a part of the province of Jiangsu, which is one of China's strongest economic regions in terms of gross regional product, Fitch said.

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