Fitch assigns Guangxi Financial BBB-

Fitch Ratings said it assigned Guangxi Financial Investment Group Co., Ltd. (GXFI) first-time long-term foreign- and local-currency issuer default ratings of BBB- and affirmed the BBB rating on its $500 million of 3.6% bonds due on Nov. 18. The outlook is stable.

“Fitch applies the government-related entity (GRE) rating criteria to rate GXFI, using the government as the notching reference, despite indirect government ownership. We use a ‘look through’ approach because we believe that support from the immediate parent - Guangxi Investment Group Co., Ltd (GIG, BBB/stable) - is likely to ultimately flow from the government, which wholly owns GIG through the Guangxi State-owned Assets Supervision and Administration Commission. We also believe GIG would not prevent GXFI from receiving timely government support,” the agency said in a press release.

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