OREANDA-NEWS. Fitch Ratings has assigned China Cinda Asset Management Co., Ltd.'s (Cinda; A/Stable) USD3bn medium-term note (MTN) programme an expected rating of 'A(EXP)' and the proposed senior unsecured US dollar notes to be issued under the programme by China Cinda Finance (2015) I Limited (Cinda Finance I) an expected rating of 'A(EXP)'. Notes issued under the MTN programme may be in any currency or of any tenor.

The proceeds of the proposed US dollar notes will be used for working capital, investment and other general corporate purposes.

The final ratings on the proposed MTN programme and US dollar notes are contingent upon the receipt of final documents conforming to information already received.

KEY RATING DRIVERS - MTN Programme and US Dollar Senior Unsecured Notes

The notes under the MTN programme will be issued by Cinda Finance I or China Cinda Finance (2015) II Limited (Cinda Finance II).The notes issued by Cinda Finance I will be unconditionally and irrevocably guaranteed by China Cinda (HK) Holdings Company Limited (Cinda HK), a wholly owned subsidiary of Cinda. The notes guaranteed by Cinda HK will be senior unsecured obligations of Cinda HK and also rank pari passu with all other unsecured and unsubordinated obligations (except obligations preferred by applicable law) of Cinda HK.

The proposed MTN programme allows Cinda to make drawdowns under the keepwell deed and deed of equity interest purchase, investment and liquidity support undertaking via Cinda Finance I as the issuer or through a direct guarantee structure provided by Cinda via Cinda Finance II as the issuer. Both Cinda Finance I and Cinda Finance II are indirect wholly-owned subsidiaries of Cinda.

Cinda has granted a keepwell deed and a deed of equity interest purchase, investment and liquidity support undertaking to ensure that Cinda HK and Cinda Finance I have sufficient assets and liquidity to meet their respective obligations under the the notes issued by Cinda Finance I under the MTN programme.

The notes issued by Cinda Finance I under the MTN programme are rated at the same level as Cinda's Issuer Default Rating, given the strong link between Cinda HK and Cinda and because the keepwell deed and deed of equity interest purchase, investment and liquidity support undertaking 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 Cinda HK and Cinda Finance I have sufficient funds to honour the 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 its offshore obligations. Additionally, a default by Cinda HK could have significant negative repercussions on Cinda for any future offshore funding.

Fitch's rating on the MTN programme is for the programme in general and individual issues under it may not be assigned the same rating as the programme's.

RATING SENSITIVITIES - MTN Programme and US Dollar Senior Unsecured Notes

Any rating action on Cinda's Issuer Default Rating would result in similar rating actions on the MTN programme and the rated notes under the MTN programme. In addition, the rating on the MTN programme will be downgraded if there is a material adverse change in the Chinese capital account regulation that results in restraints on Cinda providing timely cross-border support for the debt servicing of the notes.