Fitch gives A to Bocom notes

Fitch Ratings said it assigned Bank of Communications Co., Ltd. (Bocom) Hong Kong Branch's Chinese yuan-denominated senior unsecured notes a long-term rating of A.

The notes will be issued on June 23 in three tranches, with three-year maturity, five-year maturity and seven-year maturity. The issue amounts are RMB 1 billion, RMB 500 million and RMB 500 million, respectively.

The notes will be issued under Bocom Hong Kong Branch's $3 billion euro medium-term note program, which was rated on May 14. They will be issued to institutional investors and will be listed in the GreTai Securities Market.

Proceeds will be used for the branch's overall working capital and general corporate purposes.

Fitch said the notes represent direct, unconditional, unsubordinated and unsecured obligations of Bocom, and are rated in line with its long-term issuer default rating of A. The bank's issuer default rating is in turn based on an extremely high probability of support, if required, from the Chinese government, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.