Fitch Assigns China Orient Asset Management (International)'s USD Guaranteed Notes Final 'A-'
The offshore US dollar notes are issued by Dongxing Voyage Company Limited (DVCL). The notes are 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 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 assignment of the final ratings follows the receipt of documents conforming to information already received. The final ratings are in line with the expected ratings assigned on 14 September 2016.
KEY RATING DRIVERS
The final rating on the 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 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.
Rating action on COAMI would lead to similar action on the rating of the US dollar notes.