Fitch rates Lionbridge notes B

Fitch Ratings said it assigned a long-term issuer default rating of B+ to Lionbridge Capital Co., Ltd.

The outlook is stable.

Fitch also said it assigned an expected rating of B with recovery rating of RR5 to the proposed senior unsecured notes to be issued by New Lion Bridge Co., Ltd.

New Lion Bridge is a special-purpose vehicle set up to issue the offshore notes on behalf of Lionbridge Capital, the agency said.

Lionbridge Capital is an investment holding company incorporated in Hong Kong in 2011, Fitch said.

Lionbridge Capital's B+ issuer default rating reflects the group's credit profile on a consolidated basis, Fitch said.

The ratings also reflect the company's short operating history, high reliance on wholesale funding, weak profitability and higher leverage than other leasing companies, the agency said.

The ratings also consider its focus on the niche truck leasing market, franchise within the sector and limited maturity gap between its receivables and debt, Fitch said.

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