TEXT-Fitch rates China Construction Bank's London-issued CNY bond final 'A'

Mon Jan 14, 2013 2:27am EST

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Jan 14 - Fitch Ratings has assigned CCBL Funding PLC's CNY1bn senior, guaranteed medium-term bond (MTB) a final rating of 'A'. This follows a review of final documentation conforming to the draft documentation previously received, as well as receipt by the State Administration of Foreign Exchange (SAFE) of documentation pertaining to China Construction Bank Corporation's (CCB) guarantee. The final rating is same as the expected rating assigned on 1 November 2012.

The issue rating is derived directly from CCB's own Long-Term Local-Currency Issuer Default Rating (IDR) of 'A' to reflect the full, unconditional and irrevocable guarantee from CCB. CCBL Funding PLC is a wholly-owned special purpose vehicle (SPV) subsidiary of CCB (London) Limited. The SPV was established in 2012 to facilitate CNY bond issuance in London. The issue is capped at CNY2.5bn. Funds raised will be used to develop CCB's offshore CNY business and for other general corporate purposes.

Any event which makes enforcement of the deed of guarantee questionable would trigger a review, and could lead to a change in the issue's rating. Enforcement of the guarantee is contingent upon registration of the guarantee with SAFE, which is to take place on a monthly basis as part of CCB's monthly reporting of all overseas guarantees.

For more information, see "Fitch Rates China Construction Bank 'A'; London-issued CNY Bond 'A (EXP)'", available on www.fitchratings.com.

CCB's ratings are as follows:

- Long-Term Foreign- and Local-Currency IDRs at 'A'; Stable Outlook

- Short-Term Foreign- and Local-Currency IDRs at 'F1'

- Support Rating at '1'

- Support Rating Floor at 'A'

- Viability Rating at 'bb'

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