Fitch gives ChemChina securities BBB+

Fitch Ratings said it assigned China National Chemical Corp.’s (ChemChina, A-/stable) proposed dollar-denominated senior perpetual capital securities an expected BBB+(EXP) rating.

The securities will be issued by ChemChina's indirect wholly owned subsidiary CNRC Capitale Ltd. and unconditionally and irrevocably guaranteed by ChemChina.

Fitch said it expects to accord no equity credit to the proposed securities in its evaluation of ChemChina's capital structure and leverage as this instrument ranks pari passu with ChemChina's senior unsecured obligations.

The proposed perpetual securities are rated one notch below ChemChina's A- issuer default rating in accordance with Fitch's “Treatment and Notching of Hybrids in Nonfinancial Corporate & REIT Credit Analysis” criteria. This one-notch difference reflects the coupon deferral feature of the notes, the agency explained.

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