Fitch rates Chongqing Nan’an notes BBB+

Fitch Ratings said it assigned final rating of BBB+ to Chongqing Nan'an Urban Construction & Development (Group) Co., Ltd.'s $300 million 2 7/8% senior unsecured notes due 2019 and $500 million 3 5/8% senior unsecured notes due 2021.

The bonds are issued directly by Chongqing Nan’an and are rated at the same level as the issuer default ratings on the company, Fitch explained.

The notes will constitute direct, unconditional, unsubordinated and unsecured obligations and rank pari passu with all of the company's other obligations, the agency said.

The proceeds will be used for general corporate purposes.

The ratings are credit-linked to, but not equalized with, the assessment of Chongqing municipality's credit profile, Fitch said.

Chongqing is one of four municipalities under the direct responsibility of China's central government, the agency said.

The link reflects strong government oversight and supervision and moderate integration with the government budget, Fitch said.

The company's strengths of strong fiscal performance and diversified socio-economic profile are mitigated by moderately high contingent liabilities arising from its state-owned entities, the agency said.

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