Fitch Ratings has assigned a final rating of 'BBB-' to China-based Tianfeng Securities Co., Ltd.'s (TF Securities, BBB-/Stable) USD300 million senior unsecured 6.5% notes due in 2026.

The notes will be listed on the Hong Kong Stock Exchange and the proceeds will be used to refinance its existing offshore debt. The assignment of the final rating follows the receipt of documents conforming to information already received. The final rating is in line with the expected rating assigned on 26 February 2024.

Key Rating Drivers

The notes are rated at the same level as TF Securities' Issuer Default Rating (IDR). The notes represent direct, general and unconditional obligations of TF Securities and will at all times rank pari passu with all of its other present and future obligations.

TF Securities' IDR is based on its Standalone Credit Profile of 'bb+' and a one-notch uplift, reflecting Fitch's expectation of a modest likelihood of support from its controlling shareholder, Hubei Hongtai Group Co., Ltd (Hongtai), the only provincial financial holding company wholly owned by the Hubei Department of Finance.

Hongtai's shareholding is likely to increase to 26.54%, from 13.84%, after the planned subscription of CNY4 billion shares in a private placement announced in April 2023. The deal is still subject to regulatory approval.

For the key rating drivers and sensitivities of TF Securities, please see Fitch Assigns China's Tianfeng Securities First-Time 'BBB-' Rating; Outlook Stable, published on 14 July 2023.

RATING SENSITIVITIES

Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade

Any negative action on TF Securities' ratings will have a direct impact on the rating of the notes to the same magnitude.

Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade

Any positive action on TF Securities' ratings will have a direct impact on rating of the notes to the same magnitude.

Date of Relevant Committee

15 February 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 notes are directly linked to TF Securities' IDR.

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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