Fitch: AVIC unaffected by tap bond

Fitch Ratings said that AVIC International Holding Corp.'s (A-/stable) proposed additional issuance of its $400 million 4.375% senior notes due 2021 will not affect the A- rating on the bond, which was issued by subsidiary AVIC International Finance & Investment Ltd.

The proposed tap issuance will carry the same terms and conditions as the existing notes and will also be issued by AVIC International Finance and be unconditionally and irrevocably guaranteed by AVIC International.

The notes are rated at the same level as AVIC International's senior unsecured rating of A- because they constitute its direct and senior unsecured obligations, Fitch said.

The agency said AVIC International is rated on a top-down basis from Fitch's internal assessment of the credit profile of its parent, Aviation Industry Corp. of China, Ltd.

Aviation Industry’s credit profile reflects an expectation that China's central government would extend the company support under the agency's government-related entities rating criteria, Fitch said.

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