November 6, 2017 / 1:16 PM / a year ago

Fitch Assigns China Jianyin Investment First-Time 'A+'; Rates Proposed Notes

(The following statement was released by the rating agency) HONG KONG, November 06 (Fitch) Fitch Ratings has assigned China Jianyin Investment Limited (JIC) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) of 'A+'. The Outlook is Stable. At the same time, Fitch has assigned JIC's proposed senior unsecured notes an expected rating of 'A+(EXP)'. The notes are to be issued by JIC Zhixin Limited, JIC's wholly owned subsidiary. JIC will provide an unconditional and irrevocable guarantee on the notes. The IDRs are equalised with those of the China sovereign (A+/Stable) to reflect JIC's 100% state ownership, strong state oversight of its financials and the strategic importance of the entity's operation to the state. These factors result in a high likelihood of extraordinary state support for JIC, if needed. Therefore, JIC is classified as a credit-linked entity under Fitch's criteria. KEY RATING DRIVERS Legal Status Attribute Mid-Range: JIC is registered as a wholly state-owned limited liability company under Chinese company law. It is indirectly wholly owned by the State Council via Central Huijin Investment Co., Ltd., is supervised by the Ministry of Finance and managed by China Investment Corporation (CIC). The government does not plan to dilute its shareholding in JIC. Strategic Importance Attribute Stronger: JIC plays a vital role in supporting China's industry upgrade as Central Huijin's sole industrial investment platform and also in fostering strategic emerging industries. Moreover, JIC's two segments - investment and industrial operations and financial services - complement each other to cover essential core industries for China's economic restructure and industrial upgrade. They are also well aligned with the nation's policy direction. Integration attribute Stronger: There is a solid record of state support as the sovereign has provided JIC with subsidies, capital injections, soft loans, grants and tax incentives since JIC's inception to support the entity's development and help it implement assigned tasks. Government support also consists of the approval and grant of exclusive development rights to JIC and cooperation with setting up various industry-upgrade or emerging-industry funds. Control and Oversight attribute Stronger: JIC is under tight control and supervision. JIC's board is appointed by the CIC and its major projects require CIC approval. Its project status, financing plan and debt levels are closely monitored by the various government departments and it is required to regularly report its operational and financial results to the government and CIC. Balancing Policy and Commercial Objectives: JIC's core operational objectives are to incubate investments in strategically important emerging industries and develop and connect industry clusters. JIC exits these investments when they mature and recycles the capital into new projects to support national economic development. JIC makes these investments in close consultation with various central-government departments and CIC to determine their commercial viability. Robust Financial Profile: JIC has a highly diversified investment portfolio in terms of geographical location and industry, resulting in healthy financial metrics, with debt/EBITDA at 3.5x and EBITDA/interest coverage of 7.7x at end-2016. It also has a robust liquidity position characterised by a well-extended debt-maturity profile, long-term relationships with state-owned banks and large credit facilities thanks to its central-government public-sector entity status. RATING SENSITIVITIES Credit-Linked to Sovereign: Positive rating action would stem from a similar change in the ratings of the sovereign, in conjunction with continued strong state support. A significant weakening in JIC's strategic importance to the state, dilution of the state's shareholding to less than 51% or lower state support could result in the entity no longer being credit-linked to its sponsor, leading to negative rating action. A downgrade on JIC could also derive from negative rating action taken on the sovereign. Contact: Primary Analyst Terry Gao Senior Director +852 2263 9972 Fitch (Hong Kong) Limited 19/F Man Yee Building 68 Des Voeux Road Central, Hong Kong Secondary Analyst Jean Luo Associate Director +852 2263 9952 Secondary Analyst Ark Huang Analyst +86 21 5097 3153 Committee Chairperson Guido Bach Senior Director +49 69 768076 111 Media Relations: Wai-Lun Wan, Hong Kong, Tel: +852 2263 9935, Email: Additional information is available on Applicable Criteria International Local and Regional Governments Rating Criteria - Outside the United States (pub. 18 Apr 2016) here Rating of Public-Sector Entities – Outside the United States (pub. 22 Feb 2016) here Additional Disclosures Dodd-Frank Rating Information Disclosure Form here Solicitation Status here Endorsement Policy here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEB SITE AT WWW.FITCHRATINGS.COM. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE, AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE CODE OF CONDUCT SECTION OF THIS SITE. DIRECTORS AND SHAREHOLDERS RELEVANT INTERESTS ARE AVAILABLE here. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE. Copyright © 2017 by Fitch Ratings, Inc., Fitch Ratings Ltd. and its subsidiaries. 33 Whitehall Street, NY, NY 10004. Telephone: 1-800-753-4824, (212) 908-0500. Fax: (212) 480-4435. Reproduction or retransmission in whole or in part is prohibited except by permission. All rights reserved. In issuing and maintaining its ratings and in making other reports (including forecast information), Fitch relies on factual information it receives from issuers and underwriters and from other sources Fitch believes to be credible. Fitch conducts a reasonable investigation of the factual information relied upon by it in accordance with its ratings methodology, and obtains reasonable verification of that information from independent sources, to the extent such sources are available for a given security or in a given jurisdiction. The manner of Fitch’s factual investigation and the scope of the third-party verification it obtains will vary depending on the nature of the rated security and its issuer, the requirements and practices in the jurisdiction in which the rated security is offered and sold and/or the issuer is located, the availability and nature of relevant public information, access to the management of the issuer and its advisers, the availability of pre-existing third-party verifications such as audit reports, agreed-upon procedures letters, appraisals, actuarial reports, engineering reports, legal opinions and other reports provided by third parties, the availability of independent and competent third- party verification sources with respect to the particular security or in the particular jurisdiction of the issuer, and a variety of other factors. Users of Fitch’s ratings and reports should understand that neither an enhanced factual investigation nor any third-party verification can ensure that all of the information Fitch relies on in connection with a rating or a report will be accurate and complete. Ultimately, the issuer and its advisers are responsible for the accuracy of the information they provide to Fitch and to the market in offering documents and other reports. In issuing its ratings and its reports, Fitch must rely on the work of experts, including independent auditors with respect to financial statements and attorneys with respect to legal and tax matters. Further, ratings and forecasts of financial and other information are inherently forward-looking and embody assumptions and predictions about future events that by their nature cannot be verified as facts. As a result, despite any verification of current facts, ratings and forecasts can be affected by future events or conditions that were not anticipated at the time a rating or forecast was issued or affirmed. The information in this report is provided “as is” without any representation or warranty of any kind, and Fitch does not represent or warrant that the report or any of its contents will meet any of the requirements of a recipient of the report. A Fitch rating is an opinion as to the creditworthiness of a security. This opinion and reports made by Fitch are based on established criteria and methodologies that Fitch is continuously evaluating and updating. Therefore, ratings and reports are the collective work product of Fitch and no individual, or group of individuals, is solely responsible for a rating or a report. The rating does not address the risk of loss due to risks other than credit risk, unless such risk is specifically mentioned. Fitch is not engaged in the offer or sale of any security. All Fitch reports have shared authorship. Individuals identified in a Fitch report were involved in, but are not solely responsible for, the opinions stated therein. The individuals are named for contact purposes only. A report providing a Fitch rating is neither a prospectus nor a substitute for the information assembled, verified and presented to investors by the issuer and its agents in connection with the sale of the securities. Ratings may be changed or withdrawn at any time for any reason in the sole discretion of Fitch. Fitch does not provide investment advice of any sort. Ratings are not a recommendation to buy, sell, or hold any security. Ratings do not comment on the adequacy of market price, the suitability of any security for a particular investor, or the tax-exempt nature or taxability of payments made in respect to any security. Fitch receives fees from issuers, insurers, guarantors, other obligors, and underwriters for rating securities. Such fees generally vary from US$1,000 to US$750,000 (or the applicable currency equivalent) per issue. In certain cases, Fitch will rate all or a number of issues issued by a particular issuer, or insured or guaranteed by a particular insurer or guarantor, for a single annual fee. Such fees are expected to vary from US$10,000 to US$1,500,000 (or the applicable currency equivalent). The assignment, publication, or dissemination of a rating by Fitch shall not constitute a consent by Fitch to use its name as an expert in connection with any registration statement filed under the United States securities laws, the Financial Services and Markets Act of 2000 of the United Kingdom, or the securities laws of any particular jurisdiction. Due to the relative efficiency of electronic publishing and distribution, Fitch research may be available to electronic subscribers up to three days earlier than to print subscribers. For Australia, New Zealand, Taiwan and South Korea only: Fitch Australia Pty Ltd holds an Australian financial services license (AFS license no. 337123) which authorizes it to provide credit ratings to wholesale clients only. Credit ratings information published by Fitch is not intended to be used by persons who are retail clients within the meaning of the Corporations Act 2001

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below