Fitch rates Kunming Iron notes BBB

Fitch Ratings said it assigned Kunming Iron & Steel Holding Co., Ltd.'s proposed dollar-denominated senior unsecured notes.

The notes will be issued by New Dian Group Pte. Ltd., a wholly owned subsidiary of Kunming Iron, the agency said.

The company is a Chinese state-owned enterprise held by the Yunnan State-owned Assets Supervision and Administration Commission (Yunnan Sasac), Fitch said, and its rating is notched from an internal assessment of the creditworthiness of Yunnan province.

This reflects an assessment of the local government's strong control and support of the company, the agency said.

The province has provided support to the company in the form of capital injections and subsidies and that is expected to continue, Fitch said.

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