Fitch rates Hubei Science notes BBB+

Fitch Ratings said it assigned long-term foreign- and local-currency issuer default ratings of BBB+ to Hubei Science & Technology Investment Group Co., Ltd.

Fitch also said it assigned an expected BBB+ rating to the company's proposed senior unsecured dollar-denominated notes.

The notes will be issued by Hubei Science & Technology Investment Group (Hong Kong) Co., Ltd., an indirect wholly owned subsidiary.

The outlook is stable.

The proposed notes are expected to have a bullet repayment and the proceeds will be used for general corporate purposes of Hubei Science.

Fitch said it believes the company and the Wuhan East Lake High-Tech Development Zone, which is the zone where the company operates, are strategically important to the Wuhan municipality.

Therefore, the municipality has incentive to support Hubei Science because a default of the latter could have significant social and financial implications for the city, the agency said.

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