Fitch Ratings has assigned an expected rating of 'BBB(EXP)' to the proposed senior unsecured notes to be issued by China Industrial Securities International Financial Group Limited (CISI), a 55.82%-owned subsidiary of Industrial Securities (Hong Kong) Financial Holdings Limited as of end-September 2023.
Industrial Securities (Hong Kong) is in turn a wholly owned subsidiary of Industrial Securities Co., Ltd. (BBB/Stable).
The notes will be listed on the Hong Kong Stock Exchange and the proceeds of the proposed notes will be used for refinancing. The maturity structure will be finalised upon settlement. The final rating on the proposed notes is contingent upon the receipt of final documents conforming to information already received.
The Fujian provincial government held 29.16% of Industrial Securities as of end-September 2023, with 20.44% directly held by the Fujian Provincial Department of Finance and 8.72% by the Fujian State-owned Assets Supervision and Administration Commission (SASAC) through its wholly owned subsidiary, Fujian Investment & Development Group Co., Ltd.
Key Rating Drivers
The proposed senior unsecured notes to be issued by CISI will be unconditionally and irrevocably guaranteed by Industrial Securities.
The notes will rank pari passu with all of Industrial Securities' other present and future unsecured obligations. Therefore, the expected rating of 'BBB(EXP)' on the proposed notes is aligned with Industrial Securities' Long-Term Issuer Default Rating (IDR) of 'BBB'.
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
Any negative action on Industrial Securities' ratings will have a direct impact on the rating of the notes it guarantees to the same magnitude.
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
Any positive action on Industrial Securities' ratings will have a direct impact on rating of the notes it guarantees to the same magnitude.
Date of Relevant Committee
18 January 2024
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
Public Ratings with Credit Linkage to other ratings
The rating on CISI's guaranteed notes is directly linked to the IDR of the guarantor, Industrial Securities.
RATING ACTIONS
Entity / Debt
Rating
China Industrial Securities International Financial Group Limited
senior unsecured
LT
BBB(EXP)
Expected Rating
Page
of 1
VIEW ADDITIONAL RATING DETAILS
Additional information is available on www.fitchratings.com
CHINA INDUSTRIAL SECURITIES INTERNATIONAL FINANCIAL GROUP LIMITED 