Fitch rates Fujian Zhanglong bonds BB+

Fitch Ratings said it assigned an expected rating of BB+ to Fujian Zhanglong Group Co., Ltd.'s proposed dollar-denominated senior unsecured bonds.

The proposed bonds will be issued by Full Dragon (Hong Kong) International Development Ltd., a wholly owned subsidiary of Fujian Zhanglong.

The proceeds will be used for refinancing and working capital replenishment.

The ratings are credit-linked, but not equalized with the creditworthiness of Zhangzhou municipality in China's Fujian province, Fitch said.

The ratings reflect the strong government control and oversight of the company, mid-range assessment of the company's strategic importance to the municipality, integration with the government budget and mid-range legal status, the agency said.

These factors result in a high likelihood of extraordinary support, if needed, from the municipality, Fitch said.

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