Fitch gives China Huarong notes A

Fitch Ratings said it assigned Huarong Finance 2019 Co., Ltd.'s proposed senior unsecured notes a rating of A. The proposed notes will be issued from the company's medium-term note program, which will be increased to $5.9 billion, from $2.9 billion. The increase will not affect the A rating on the program.

Huarong Finance 2019 is wholly owned by China Huarong International Holdings Ltd., which, in turn, is wholly owned by China Huarong Asset Management Co., Ltd., one of four asset-management companies established by China's state council to resolve the non-performing assets of major banks.

The proposed notes are rated at the same level as China Huarong's issuer default rating due to the strong link between China Huarong and Huarong International and because the keepwell deed and deed of equity interest purchase, investment and liquidity support undertaking transfer the ultimate responsibility of payment to China Huarong.

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