Fitch rates Guangxi Liuzhou notes BB

Fitch Ratings said it published long-term foreign- and local-currency issuer default ratings of BB on Guangxi Liuzhou Dongcheng Investment Development Group Co., Ltd.

The outlook is stable.

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

The offshore notes will be directly issued by Guangxi Liuzhou and will constitute its direct, unconditional, unsubordinated and unsecured obligations, the agency said.

The notes will at all times rank pari passu among themselves and at least equally with all of the company's other present and future unsecured and unsubordinated obligations.

The proceeds will be used for general corporate purposes, Fitch said.

The ratings reflect the company's role as a government-related entity as it is owned by the Liuzhou municipality, the agency said.

The municipal government has provided the company with capital injections, project funds and subsidies, income return on state-owned asset operation, low-cost funding and debt repayment assistance, Fitch said.

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