Fitch rates Power Construction securities BBB

Fitch Ratings said it assigned Power Construction Corp. of China’s proposed $300 million of perpetual capital securities a rating of BBB.

The perpetual capital securities will be sold by DianJian Haiyu Ltd., which is 58.34% indirectly owned by Power Construction and are guaranteed by Power Construction.

“The perpetual securities, although they are senior obligations, are rated one notch below PCCC’s BBB+ issuer default rating in accordance with Fitch’s corporate hybrids treatment and notching criteria. The one-notch difference reflects the notes’ coupon-deferral feature,” the agency said in a press release.

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