Fitch rates Chindata, notes BBB-

Fitch Ratings said it published Chindata Group Holdings Ltd.'s long-term foreign- and local-currency issuer default ratings and foreign-currency senior unsecured rating of BBB-. The outlook is stable. The agency also assigned a BBB- rating to the planned dollar senior unsecured notes to be issued by Chindata.

“Chindata's ratings reflect a resilient business model with high cash flow visibility backed by long-term contracts with strong counterparties. Customers must pay the majority of the revenue over the contract life should they choose to terminate contracts early. Mission-critical infrastructure is provided to customers with which it has an average lease tenor of over nine years. Chindata's in-service capacity was 90% contracted at end-March 2021 and under-construction capacity was 70% contracted,” the agency said in a press release.

The notes are rated in line with Chindata's senior unsecured rating of BBB- as they will rank equally with its other senior unsecured debt, Fitch said.

Chindata plans to use the proceeds to refinance debt, build data centers in China and overseas, supplement working capital and invest in research and development.

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