Fitch rates Huarong, notes A

Fitch Ratings said it assigned Huarong Real Estate Co., Ltd. a long-term issuer default rating of A and a short-term issuer default rating of F1.

The outlook is stable.

The agency also assigned an A(EXP) expected rating to the proposed senior unsecured notes to be issued by Huarong Universe Investment Holding Ltd., a wholly owned subsidiary of Huarong Real Estate incorporated in British Virgin Islands. The proposed notes will be unconditionally and irrevocably guaranteed by Huarong Real Estate.

The notes will be listed on the Irish Stock Exchange and the proceeds will be used for general corporate purposes. The maturity structure will be finalized upon settlement.

Huarong Real Estate is a direct and wholly owned subsidiary of China Huarong Asset Management Co., Ltd. (A/stable).

“Huarong Real Estate's ratings are equalized with those of China Huarong, underpinned by Fitch's view of an extremely high probability of support from China Huarong, given its role as core subsidiary of the parent group and reputational risk to the parent in the case of default,” the agency said in a news release.

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