Fitch gives Bank of China notes A

Fitch Ratings said it gave an expected A rating to Bank of China (Hong Kong) Ltd.’s planned senior unsecured notes. The notes will be sold under the bank’s $40 billion medium-term note program. The bank plans to sell fixed-rate notes denominated in Chinese yuan and U.S. dollars.

“BOC’s Hong Kong branch is part of the same legal entity as BOC. Therefore, the proposed notes will represent BOC’s direct, unconditional, unsecured and unsubordinated obligations and are rated in line with its long-term issuer default rating (IDR), which is underpinned by the agency’s expectations of an extremely high probability of support from the Chinese sovereign (A+/stable) in the event of stress,” Fitch said in a press release.

These notes will be issued as transition bonds, with the proceeds to be used to finance and refinance transition projects in traditional industries that are moving towards a low- or zero-carbon footprint.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.