Fitch gives Power Construction securities BBB

Fitch Ratings said it assigned Power Construction Corp. of China's $300 million of perpetual capital securities, which were issued on Oct. 25, 2019, a rating of BBB. The perpetual capital securities were issued by Sepco Virgin Ltd., Power Construction's 100%-indirectly owned subsidiary. Power Construction guarantees the securities.

The perpetual securities, although they are senior obligations, are rated a notch below Power Construction’s BBB+ issuer default rating under Fitch's corporate hybrids treatment and notching criteria. The one-notch mirrors the notes' coupon-deferral feature, the agency said.

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