Fitch downgrades Hanrui

Fitch Ratings said it downgraded Jiangsu HanRui Investment Holding Co., Ltd.'s (Hanrui) long-term foreign- and local-currency issuer default ratings to B+ from BB+ and removed the ratings from Rating Watch negative.

The outlook is stable.

The agency also said it downgraded Hanrui's $490 million 4.9% notes due 2019 and $110 million 6¼% notes due 2020 to B+ from BB+ and removed the ratings from negative watch.

The notes are issued by Hanrui Overseas Investment Co., Ltd.

The action comprises a two-notch downgrade due to the application of a new government-related entities rating criteria, Fitch said, and a further one-notch downward revision following the deterioration of the creditworthiness of Hanrui's sponsor, the Zhenjiang municipal government.

Fitch revised its view on the Zhenjiang government due to its worse-than-expected budgetary performance and continued concerns over high contingent liabilities.

The ratings also reflect Zhenjiang municipality's full ownership of the company, indirect control of and strong track record of support for the company, the agency said.

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