Fitch rates Suqian Economic bonds BB

Fitch Ratings said it assigned a final rating of BB to Suqian Economic Development Corp.'s $150 million 5 3/8% senior unsecured bonds due 2019.

The final rating is in line with the expected rating assigned in October, Fitch said.

The bonds are issued by wholly owned subsidiary Suqian Economic Development (BVI) Co., Ltd. and are unconditionally and irrevocably guaranteed by Suqian Economic Development (HK) Co., Ltd., also a wholly owned subsidiary of Suqian Economic Development.

The bonds are senior unsecured obligations of the group and rank at all times pari passu with its other present and future unsecured and unsubordinated obligations, Fitch said.

The bonds are rated at the same level as the company’s issuer default rating due to the strong link between Suqian Economic and Suqian Economic BVI and due to the deeds that transfer the ultimate responsibility of payment to Suqian Economic, the agency said.

The ratings also are credit-linked but not equalized with an internal assessment of the creditworthiness of Suqian municipality, which is located in the northeastern Jiangsu province in China, the agency said.

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