Fitch to give Citigroup convertibles AA-

Fitch Ratings said it expects to assign an AA- rating to $7.5 billion of mandatory convertible securities to be issued by Citigroup Inc.

The securities are being privately placed with Abu Dhabi Investment Authority, Fitch added, noting that the investment is expected to close in the next several days.

Substantially all the proceeds will be treated as tier I capital for regulatory capital purposes, the agency said, adding that it considers the portion that converts to common stock within three years to be a class E hybrid security.

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