OREANDA-NEWS. Fitch Ratings has assigned final ratings of 'B' with a Recovery Rating of 'RR4' to the USD150m 7.875% senior unsecured notes issued by Silver Sparkle Limited. The notes are due in August 2019.

Silver Sparkle is a special purpose vehicle (SPV) set up to issue the offshore notes on behalf of Fenghui Leasing Co., Ltd (Fenghui), a China-based leasing company covering equipment leasing and entrusted loans.

The notes are unconditionally and irrevocably guaranteed by Fenghui, which plans to use the proceeds of the issuance for overseas investment and general corporate purposes.

The final rating is in line with the 'B/RR4 (EXP)' rating that Fitch assigned to the proposed notes on 26 July 2016, and follows receipt of final documentation conforming to the information previously received by Fitch.


The notes represent a general, unsecured and unsubordinated obligation of Fenghui, and will rank pari passu with all other existing and future unsecured and unsubordinated obligations of Fenghui. The notes are rated at the same level at Fenghui's Long-Term IDR with a Recovery Rating of 'RR4', reflecting average recovery prospects.


The rating assigned to these notes would be sensitive to the same factors that drive the guarantor's IDR. The rating on the notes would also be sensitive to the size of notes issuance relative to the guarantor's unencumbered assets

Please see Rating Action Commentary, dated 26 July 2016, for details of Fenghui Leasing's ratings.