Fitch rates Beijing Capital notes BBB

Fitch Ratings said it assigned a long-term local-currency issuer default rating of BBB to Beijing Capital Group Co. Ltd. with a stable outlook.

The agency also said it assigned an expected rating of BBB to the proposed offshore Chinese yuan senior unsecured notes to be issued by Rosy Capital Global Ltd.

The notes are unconditionally and irrevocably guaranteed by Beijing Capital Juda Ltd., an indirect 75%-owned listed subsidiary of Beijing Capital.

The notes are rated at the same level as Beijing Capital’s senior unsecured rating, attributed to the keepwell and liquidity support deeds, which ensure that the issuer and guarantor have sufficient assets and liquidity to meet their respective obligations for the senior notes, Fitch said.

The proceeds will be used for working-capital needs and general corporate purposes of the group, the agency said.

The ratings benefit from a two-notch uplift, reflecting the company’s moderately strong operational and strategic linkage with the Beijing municipal government, Fitch said.

The ratings also consider its diversified business operations and large wholly-owned asset pool, the agency added.

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