Fitch: Zhuzhou City Construction view to negative

Fitch Ratings said it revised the outlook on Zhuzhou City Construction Development Group Co., Ltd. to negative from stable.

Fitch also said it affirmed the company's long-term foreign- and local-currency issuer default ratings at BBB-.

The outlook revision considers an expectation of Zhuzhou municipality's weaker ability to provide support to the company based on an internal assessment of the sponsor, Fitch said.

But, the agency said it believes support would still be forthcoming due to the ownership and control status, track record of support and implications of a default.

Fitch also affirmed the rating on the company's $300 million 2.98% senior unsecured bonds at BBB-.

The bonds are direct, unconditional and unsecured obligations and rank pari passu with all of the company's other obligations.

Zhuzhou City Construction is ultimately owned by the Zhuzhou municipal government, which exercises full control over its operational, financial and investment activities, Fitch said.

The Zhuzhou municipal government has been consistently supporting the issuer via capital injections and grants, subsidies and local government debt swaps, the agency added.

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