News & Events

 18 October, 2017

CCXAP assigns ratings to Qiannan Dongsheng Development Co., Ltd and its offshore USD notes

Hong Kong, 18 October 2017 -- China Chengxin (Asia Pacific) Credit Ratings (“CCXAP”) has assigned a first-time long-term credit rating of BBBg- to Qiannan Dongsheng Development Co., Ltd. (“QDD”), and a short-term credit rating of Ag-3 to its USD short-term senior notes. The rating outlook is stable. CCXAP assigns ratings to QDD and its notes based on (1) the development of Qiannan Prefecture and Duyun Economic Development Zone; (2) the economic and financial strength of the local government; (3) the business operation of QDD; and (4) the support from the local government.

QDD was established in 2012 and changed its name in April 2014. The State-owned Assets Supervision and Administration Commission of Qiannan City, Finance Bureau of Duyun Economic Development Zone and China Agricultural Major Development Fund Co. Ltd held 60.00%, 34.73% and 5.27% of the Company’s shares, respectively. As one of the important infrastructure construction and investment platform in Duyun Economic Development Zone, QDD receives strong support from local government in terms of capital injection and asset injection.

On 21 June 2017, QDD issued USD 150 million 364 days 6.15% senior notes through private placement. The notes startedon 30 June 2017 and will due on 29 June 2018. Haitong Bank acted as a placing agent of the notes. CCXAP is the first Chinese rating agency licensed in Hong Kong, which was established in response to the internalization of RMB currency and China’s capital markets. CCXAP provides credit rating services to domestic and international corporates and financial institutions, which issue bonds, structured finance products and asset securitization products denominated in all currencies and issued in Hong Kong, Asia Pacific and Europe.