Fitch affirms Beijing State-Owned Assets

Fitch Ratings said it affirmed Beijing State-Owned Assets Management Co., Ltd.'s (BSAM) long-term foreign-currency issuer default rating and assigned a long-term local-currency issuer default rating of A.

The outlook is stable.

The agency also affirmed the senior unsecured debt at A.

In addition, Fitch affirmed the A rating of the $300 million 3% senior unsecured notes due 2020 and the $700 million 4 1/8% senior unsecured notes due 2025 issued by Beijing State-owned Assets Management (Hong Kong) Co. Ltd. (BSAMHK), a wholly owned subsidiary of BSAM. In place of a guarantee, BSAM granted a keepwell and liquidity support deed and a deed of equity interest purchase undertaking to ensure BSAMHK has sufficient assets and liquidity to meet its obligations under the guarantee for the dollar-denominated bonds, which are BSAM's first issuance of offshore debt.

Fitch said the notes are affirmed at the same level as BSAM's issuer default rating, given the strong linkage between BSAMHK and BSAM, and because the keepwell and liquidity support deed and deed of equity interest purchase undertaking transfer the ultimate responsibility of payment to BSAM.

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