Fitch Rates China Orient's USD Notes under MTN Programme Final 'A'
The assignment of the final rating follows the receipt of documents conforming to information already received. The final ratings are in line with the expected ratings assigned on 24 August 2016.
KEY RATING DRIVERS
The notes are unconditionally and irrevocably guaranteed by China Orient Asset Management (International) Holding Ltd (COAMI, A-/Stable), a wholly owned subsidiary of China Orient Asset Management Corporation (COAM, A/Stable). The notes will be COAMI's senior unsecured obligations and rank pari passu with its other senior unsecured obligations.
The notes are rated at the same level as COAM's Issuer Default Rating (IDR), due to the strong link between COAM and COAMI and because the keepwell deed and deed of equity interest purchase undertaking transfers the ultimate responsibility of payment to COAM.
Fitch believes the keepwell and deed of equity interest purchase undertaking signal a strong intention from COAM to ensure COAMI has sufficient funds to honour its debt obligations. The agency also believes COAM intends to maintain its reputation and credit profile in the international offshore market and is unlikely to default on offshore obligations, as a default by COAMI could have significant negative repercussions on COAM for any future offshore funding.
COAM is one of China's four large national asset management companies established to mitigate financial risks, preserve state-owned assets and promote the reform and development of the country's financial system.
RATING SENSITIVITIES
Any rating action on COAM's IDR would result in similar rating action on the programme and rated notes. Any rating action on the China sovereign (A+/Stable) will likely have similar action on COAM's Issuer DR.
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