Fitch Rates China Orient Asset Management (International)'s USD Guaranteed Notes 'A-(EXP)'
The proposed offshore US dollar notes will be issued by Dongxing Voyage Company Limited (DVCL). The notes will be jointly and severally unconditionally and irrevocably guaranteed by both COAMI and DVCL's immediate parent - Dongxing Securities (Hong Kong) Financial Holdings Limited (DXHK). The notes will rank equally with all other present and future unsecured and unsubordinated obligation of COAMI.
China Orient Asset Management Corporation (COAM, A/Stable) is the ultimate parent of COAMI, DVCL and DXHK.
The final ratings on the proposed US dollar notes are contingent upon the receipt of final documents conforming to information already received.
KEY RATING DRIVERS
The expected rating on the proposed notes is based on the unconditional and irrevocable guarantee provided by COAMI. COAMI is the major offshore financing and investment platform for COAM, which owns 100% of COAMI.
COAM is one of the four big asset management companies established by the Chinese government to mitigate financial risks, preserve state-owned assets, and promote the reform and development of China's financial system.
Both COAM and COAMI are classified as a credit-linked public-sector entities under Fitch's criteria. COAM's ratings are credit-linked to China's sovereign rating (A+/Stable) and rated one notch below. In turn, COAMI's ratings are credit-linked to COAM and rated one notch below.
A rating action on COAMI would also lead to a similar action on the rating on the proposed US dollar notes.