Fitch Ratings has assigned an expected 'BBB+(EXP)' rating to
The MTN programme was first rated 'BBB+' by Fitch on
The proposed notes will be listed on the
The proposed notes will be issued by CICC Hong Kong Finance 2016
Key Rating Drivers
The expected rating on the proposed notes under the MTN programme mainly reflects our assessment of a high probability of support from CICC for both
The proposed notes constitute direct, unsubordinated, unconditional, and unsecured obligations of CICC Hong Kong 2016 MTN and will rank at all times pari passu with all other unsubordinated and unsecured obligations. CICC's keepwell deed is intended to cause
There could be practical difficulties in enforcing the keepwell deed, which is not as strong as a guarantee. Nevertheless, the agreement at the parent level suggests a very strong propensity for CICC to support the guarantor and issuer, if needed.
CICC's Long-Term Issuer Default Rating (IDR), affirmed on
RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
A downgrade of CICC's Long-Term IDR is likely to affect the expected rating on the proposed notes under the MTN programme to the same extent. Any indication of a decline in CICC's propensity and/or ability to support the guarantor or issuer will also lead to negative rating action on the proposed notes.
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
As the expected rating of the proposed notes is already equalised with that of CICC, a rating upgrade appears unlikely without a similar rating action on CICC.
Date of Relevant Committee
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 expected rating of the proposed notes is directly linked to the ratings of
ESG Considerations
The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.
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