Fitch rates Shandong High-speed bonds A

Fitch Ratings said it assigned Shandong High-speed Group Co., Ltd.’s proposed dollar-denominated senior unsecured bonds a rating of A.

The bonds will be issued by subsidiary Shandong Hi-Speed Group (Hong Kong) Co., Ltd. and will benefit from a keepwell deed and a deed of equity interest purchase undertaking given by the parent.

The proposed bonds are rated at the same level as Fitch’s internal assessment of the issuer, which is the same as the parent’s issuer default rating. In Fitch’s opinion, the keepwell deed and the deed of equity interest signal the parent’s strong intention to ensure the issuer has the funds to honor its debt obligations, Fitch said.

The proceeds will be used for refinancing and general corporate purposes.

The outlook is stable.

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