Fitch rates SDIC notes A+

Fitch Ratings said it published China's State Development & Investment Corp.'s (SDIC) long-term foreign- and local-currency issuer default ratings of A+.

The outlook is stable.

Fitch also said it assigned an expected A+ rating to the company's proposed dollar-denominated senior unsecured guaranteed notes.

The notes will be issued by Rongshi International Finance Ltd., SDIC's indirectly wholly owned subsidiary, the agency said, and unconditionally and irrevocably guaranteed by SDIC.

The proceeds will be used for refinancing and general corporate purposes, Fitch said.

The proposed notes are rated at the same level as SDIC's issuer default rating because the direct guarantee structure transfers the ultimate responsibility of payment to SDIC, the agency noted.

The proposed notes will constitute SDIC's unconditional, unsubordinated and unsecured obligations, Fitch added.

The ratings are equalized with those of China's sovereign because of the state's 100% ownership of the entity, strong state oversight of SDIC's financials and strategic importance of the entity's operation to the state, the agency said.

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

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