Fitch Ratings maintained Yuexiu Transport Infrastructure's (HKG:1052) BBB long-term foreign and local currency issuer default rating and senior unsecured rating, according to a Tuesday release.

The rating action reflects the company's ample headroom to take in its planned purchase of the Henan Pinglin expressway in Henan, China.

The toll road and bridge operator will fund the project with cash and wholly consolidate the related debt into its balance sheet.

The affirmation also considers the large capital expenditure required to expand the Guangzhou North Second Ring Expressway.

Fitch sees the company as capable of managing the pace of its current capital expenditure and the timing of another potential acquisition, the Shandong Qinbin Expressway, in a way that will still align its financial profile with its current rating.

However, any significant, heavily debt-funded purchases that could hit the company's financial profile will have an effect on its standalone credit profile, Fitch said.

The company's issuer default rating mirrors its standalone credit profile, which is in line with its parent's credit assessment, Fitch said.

The ratings consider Yuexiu Transport Infrastructure's substantial expressway portfolio and solid financial profile.

Future rating actions will depend on notable shits in the company's projected net debt-to-EBITDA ratio, additional debt-funded acquisitions or changes in the parent's credit profile, Fitch said.