Fitch rates China Construction bonds BBB+

Fitch Ratings said it assigned an expected BBB+ rating to China Construction Bank Corp.’s planned offshore Basel III-compliant tier 2 subordinated bonds.

Fitch said it uses the bank’s A issuer default rating as its anchor. “The proposed bonds are notched down twice from their anchor rating to reflect high loss severity relative to senior unsecured instruments, implying a rating of BBB+.”

The proceeds will be used to increase the bank's tier 2 capital.

The outlook is stable.

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