Fitch rates SFund notes A-

Fitch Ratings said it assigned long-term foreign- and local-currency issuer default ratings of A- to Guangzhou Industrial Investment Fund Management Co., Ltd. (SFund).

Fitch also said it assigned an expected rating of A- to SFund's proposed senior unsecured dollar-denominated notes.

The outlook is stable.

The offshore notes will be issued by Guangzhou Silk Road Investment Ltd., which is an indirect, wholly owned subsidiary of SFund, the agency said.

SFund will provide an unconditional and irrevocable guarantee to the proposed notes, Fitch said.

The proceeds will be used for working capital and general corporate purposes, the agency noted.

The ratings are credit-linked, but not equalized, with those of Guangzhou municipality, Fitch said.

The link reflects strong government control and oversight, mid-range strategic importance to the municipality, integration with the government budget and legal status, the agency explained.

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

The Guangzhou municipality is generally considered a first-tier city in China, the agency said, with a gross regional product that ranks third among all Chinese cities, just behind Beijing and Shanghai.

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