Fitch trims Tianjin Binhai New Area

Fitch Ratings said it downgraded Tianjin Binhai New Area Construction and Investment Group Co., Ltd.'s long-term foreign- and local-currency issuer default ratings to BBB from BBB+. Concurrently, Fitch lowered the $300 million of 5 7/8% senior unsecured notes due 2022 the company guarantees to BBB from BBB+. The bonds were issued by Zhaobing Investment (BVI) Ltd., Tianjin Binhai’s wholly owned subsidiary.

“The rating actions follow a revision of Fitch's perception of Tianjin municipality's ability to provide subsidies, grants and other legitimate resources allowed under China's policies and regulations, while our assessment of the respective linkages between the government-related entities (GREs) and the municipality remains unchanged. The downgrade of the IDRs reflects mainly Tianjin municipality's weaker budgetary performance and increasing debts,” the agency said in a press release.

The outlook is stable.

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