OREANDA-NEWS. Fitch Ratings has assigned ABCL Glory Capital Limited's (ABCL Glory) USD500m guaranteed senior notes a final rating of 'A'. The notes are due in 2021.

ABCL Glory is an offshore special-purpose vehicle wholly owned by ABC Leasing International Corporation Limited (ABCLI), but under the management control of ABC Financial Leasing Corporation Limited (ABC Leasing). Both ABCLI and ABC Leasing are wholly owned subsidiaries of ABC. Fitch views ABC Leasing as a core subsidiary of ABC because it provides financial leasing services to ABC's customers.

The notes represent direct, general, unconditional, unsubordinated and unsecured obligations of ABCL Glory and are unconditionally and irrevocably guaranteed by the Hong Kong branch of ABC (Hong Kong Branch). Fitch views the Hong Kong Branch as part of the same legal entity and it plays an important role in developing ABC's overseas businesses. The proceeds will be used for general corporate purposes by ABC Leasing or any of its subsidiaries and affiliates.

The assignment of the final ratings follows the completion of the bond issuance and receipt of documents conforming to the information previously received. The final ratings are in line with the expected rating of 'A(EXP)' assigned on 6 June 2016.

KEY RATING DRIVERS

The notes represent direct, general, unconditional, unsubordinated and unsecured obligations of ABC Glory by virtue of the deed of guarantee given by the Hong Kong Branch in favour of the notes. The obligations rank pari passu with all other present and future unconditional, unsubordinated and unsecured obligations of the Hong Kong Branch. The notes' rating reflects the ratings expected to be assigned to senior notes and is in line with ABC's Long-Term Issuer Default Rating (IDR), which is in turn based on an extremely high probability of support, if required, from the Chinese government (A+/Stable).

RATING SENSITIVITIES

Any changes to the notes' rating will be directly correlated to changes in ABC's IDR, which in turn will reflect any shift in the perceived willingness or ability of China's government to support ABC in a full and timely manner. The rating of the notes could be downgraded if the deed of guarantee given by the Hong Kong Branch is no longer effective.

The other ratings of ABC are unaffected by this rating action, and are as follows:

Long-Term IDR: 'A'; Outlook Stable

Short-Term IDR: 'F1'

Support Rating: '1'

Support Rating Floor: 'A'

Viability Rating: 'bb'