News & Events
3 November 2017
CCXAP assigns ratings to Tongren Transport & Tourism Development & Investment Group Co., Ltd and its offshore bonds
Hong Kong, 2 November 2017 -- China Chengxin (Asia Pacific) Credit Ratings (“CCXAP”) has assigned a first-time long-term credit rating of BBBg- to Tongren Transport & Tourism Development & Investment Group Co., Ltd (“TTT”), and a short-term credit rating of Ag-3 to its USD short-term senior bonds. The rating outlook is stable. CCXAP assigns ratings to TTT and its bonds based on (1) the recent development of Tongren City; (2) the economic and financial strength of the local government; (3) the strategic position of TTT; and (4) the support from the local government.
TTT is wholly owned by Finance Bureau of Tongren City. In April 2017, Tongren Municipal Government launched a restructuring plan on its local government financing vehicles. On the basis of Tongren Fanjing Mountain Tourism Development & Investment Co., Ltd., TTT becomes the important development and investment platform of tourism and transportation resources in Tongren City. Therefore, TTT receives strong support from the local government in terms of capital injection, asset injection, integration and consolidation of regional resources. Meanwhile, CCXAP also considers the increasingly sizable capital expenditure on pipeline projects which may exerts pressure on TTT’s credit profile.
On 26 October 2017, TTT issued USD 70 million 364 days 6.35% senior bonds through private placement. The bonds started on 2 November 2017 and will due on 1 November 2018. Haitong Bank acted as a placing agent of the bonds and CCXAP assigned credit ratings on the bonds. 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 corporations 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.