Fitch rates Far East Horizon notes BB

Fitch Ratings said it assigned an expected BB rating to Far East Horizon Ltd.'s proposed dollar-denominated subordinated perpetual capital securities.

The securities will be issued by King Talent Management Ltd., an special purpose vehicle wholly owned by Far East Horizon and will be irrevocably and unconditionally guaranteed by Far East Horizon.

The proceeds will be used for working capital and general corporate purposes, Fitch said.

The securities constitute direct, unsecured and subordinated obligations of Far East Horizon, the agency said, and will rank pari passu among themselves and junior to its senior securities.

Far East Horizon is the fifth largest Chinese leasing company overall and is among the largest independent leasing companies in China by assets, Fitch said.

The rating on the subordinated perpetual capital securities is two notches lower than the company's issuer default rating of BBB-, reflecting the securities' coupon deferral and deep subordination, the agency said.

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