Fitch: China Construction Bank bonds BBB+

Fitch Ratings said it assigned a final rating of BBB+ to China Construction Bank’s second offshore Basel III-compliant tier 2 subordinated bonds.

The bonds are the bank’s second offshore Basel III-compliant notes, following the first notes issued in November 2014, Fitch said.

The size of the issue is $2 billion with a coupon rate of 3 7/8%. The bonds have been listed on the Hong Kong Stock Exchange and will mature in May 13, 2025.

The rating is two notches below the bank’s issuer default rating of A to reflect their high loss severity relative to senior unsecured instruments given their subordination and full write-off feature, Fitch said.

The bank’s other ratings are unaffected, including its short-term foreign-currency issuer default rating at F1, long-term local-currency issuer default rating at A, short-term local-currency issuer default rating at F1 and viability rating at BB.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.