Fitch: Bluestar notes BBB-

Fitch Ratings said it assigned a long-term foreign-currency issuer default rating of BBB- to China National Bluestar (Group) Co., Ltd. (Bluestar), along with a senior unsecured rating of BBB-.

The outlook is stable.

Fitch also said it assigned an expected BBB- rating to Bluestar Finance Holdings Ltd.’s proposed dollar-denominated senior notes, unconditionally and irrevocably guaranteed by Bluestar.

Bluestar Finance is a 100%-owned subsidiary of Bluestar.

The ratings reflect strong operational linkage with parent, China National Chemical Corp. (ChemChina), the country’s largest chemical company, Fitch said.

ChemChina has also granted a keepwell deed and a deed of purchase undertaking to ensure Bluestar and Bluestar Finance have sufficient assets and liquidity to meet the obligations for the proposed notes, the agency said.

The ratings are linked to that of ChemChina due to strong legal, operational and strategic ties, Fitch said.

Bluestar carries out businesses in all of ChemChina’s core segments, the agency said, and operates as the largest overseas platform for the parent.

Fitch also said it considers the strong legal ties, as Bluestar consistently receives guarantees from ChemChina for a significant portion of its debt.

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