Fitch Rates Guangzhou Communications' USD Notes Final 'A-'
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 20 May 2015.
KEY RATING DRIVERS
The notes were issued by Express (BVI) 2015 Ltd, and were unconditionally and irrevocably guaranteed by Dynasty Easy Limited (DEL), a wholly owned subsidiary of GCIG.
In place of a guarantee, GCIG has granted a keepwell and liquidity support deed and a deed of equity interest purchase undertaking to ensure DEL has sufficient assets and liquidity to meet its obligations under the guarantee for the proposed US dollar bond, which were GCIG's first issuance of offshore debt.
The bond is rated at the same level as GCIG's Issuer Default Ratings (IDRs), given the strong linkage between DEL and GCIG and because the keepwell and liquidity support deed and deed of equity interest purchase undertaking transfers the ultimate responsibility of payment to GCIG.
In Fitch's opinion, the keepwell and liquidity support deed and the deed of equity interest purchase undertaking all signal a strong intention from GCIG to ensure that DEL has sufficient funds to honour its debt obligations.
RATING SENSITIVITIES
Any rating action on GCIG's IDR would result in similar rating action on the US dollar senior unsecured notes.
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