Fitch Ratings has given a BB+ rating to China Hongqiao Group's (HKG:1378) proposed US dollar senior unsecured notes, according to a Sunday release.

The proposed notes are similarly rated as the issuer's senior unsecured debt, given that they are its obligations and rank equally with all of its other obligations, Fitch said.

The issuer's rating considers its status as one of the biggest aluminum smelters, competitive cost position, high raw-material self-sufficiency, and continued low leverage.

The outlook is stable, based on Fitch's view that the company will retain its robust business and financial profile.

A sustained leverage above 2x, greater reliance on short-term financing, and continued negative free cash flow could trigger negative rating actions for the company, Fitch said.

Meanwhile, a significant improvement in its maturity profile and funding sources could lead to a rating upgrade, Fitch said.