Fitch: Power Construction notes BBB+

Fitch Ratings said it assigned an expected rating of BBB+ to Power Construction Corp. of China's proposed dollar-denominated senior perpetual capital securities.

The agency also said it assigned an expected A- rating to Power Construction's proposed medium-term note program and senior perpetual securities program.

The proposed senior perpetual capital securities will be issued by Power's indirect wholly owned subsidiary, DianJian Haiyu Ltd., under the program and the program will be unconditionally and irrevocably guaranteed by Power Construction, Fitch said.

The proposed perpetual securities are rated one notch below Power's A- issuer default rating. The one-notch difference reflects the notes' coupon deferral feature, the agency said.

Power Construction maintained its leading position in China's clean energy engineering and construction market in 2016, supporting its strong strategic and operational ties with the state, Fitch said.

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