S&P: Citic Pacific notes BBB-

Standard & Poor's said it assigned a BBB- rating to the $2 billion medium-term notes program of Citic Pacific Ltd., along with a BBB- rating to the proposed senior unsecured notes to be issued under this program.

The company is proposing to issue perpetual capital securities, the agency added, and they will be treated as having intermediate equity content under the criteria for hybrid securities.

This means S&P will treat 50% of the securities as equity and 50% as debt. The proceeds will be used to repay borrowings and for other corporate purposes.

The ratings are based on the company's stand-alone credit profile of BB- and strong parent support, the agency said.

Citic Group is the controlling shareholder of Citic Pacific, which is a strategically important subsidiary to the group, S&P said, adding that it believes timely and sufficient extraordinary government support for Citic Group could flow to Citic Pacific to some extent.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.