RPT-Fitch Rates China Cinda Asset Management's USD Notes Final 'A'
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May 12 (Reuters) - (The following statement was released by the rating agency)
Fitch Ratings has assigned China Cinda Asset Management Co., Ltd's (Cinda; A/Stable) USD1bn 4% senior unsecured notes due 2019 and USD500m 5.625% senior unsecured notes due 2024 final ratings of 'A'. The proceeds will be used for working capital, investment and other general corporate purposes.
The notes, to be issued by China Cinda Finance (2014) Limited, are to be unconditionally and irrevocably guaranteed by Well Kent International Investment Company Limited (Well Kent), a wholly owned subsidiary of Cinda. Cinda has granted a keepwell deed and a deed of equity interest purchase, investment and liquidity support undertaking to ensure that the guarantor, Well Kent, has sufficient assets and liquidity to meet its obligations under the guarantee for the US dollar notes.
The notes are rated at the same level as Cinda's Issuer Default Rating, given the strong link between Well Kent and Cinda and the keepwell deed and the deed of equity interest purchase, investment and liquidity support undertaking, which provide additional support and transfer the ultimate responsibility of payment to Cinda.
In Fitch's opinion, both the keepwell deed and the deed of equity interest purchase, investment and liquidity support undertaking signal a strong intention from Cinda to ensure that Well Kent has sufficient funds to honour the proposed debt obligations. The agency also believes Cinda intends to maintain its reputation and credit profile in the international offshore market, and is unlikely to default on offshore obligations. Additionally a default of Well Kent could have significant negative repercussions on Cinda for any future offshore funding.
The assignment of the final rating follows the receipt of documents conforming to information already received. The final rating is in line with the expected rating assigned on 29 April 2014.