Fitch rates China International notes BBB+

Fitch Ratings said it assigned an expected rating of BBB+ to China International Capital Corp. (Hong Kong) Ltd.'s proposed long-term senior unsecured dollar-denominated notes to be issued under its medium-term note program.

The proceeds will be used to refinance outstanding indebtedness and support working capital and general corporate purposes, Fitch said.

The notes will be issued by CICC Hong Kong Finance 2016 MTN Ltd. and unconditionally and irrevocably guaranteed by China International Capital, which established CICC Hong Kong Finance as an offshore special purpose vehicle, the agency said.

In place of a guarantee, China International Capital has provided a keepwell deed to ensure the companies have sufficient liquidity to meet their respective obligations for the notes, Fitch said.

China International Capital's ratings are mainly driven by expectations that it will receive extraordinary support from major shareholder, Central Huijin Investment Ltd., if needed, on the back of its strategic role as an internationally influential investment bank from China and its strong linkage with Central Huijin, a wholly owned subsidiary of China Investment Corp., the country's sovereign wealth fund, the agency explained.

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