S&P rates Hong Kong and China Gas notes A-

S&P said it assigned an A- long-term issue rating to a proposed issuance of perpetual subordinated capital securities that the Hong Kong and China Gas Co. Ltd. guarantees.

Towngas (Finance) Ltd., a 100%-owned special purpose subsidiary, will issue the dollar-denominated securities, the agency said.

The securities will benefit from an unconditional and irrevocable subordinated guarantee from Hong Kong and China Gas, covering timely payment under the securities unless deferred, S&P noted.

The proposed perpetual securities will be used primarily to replace the company's previously redeemed $300 million perpetual securities, which have a first call date Jan. 28, the agency said.

The securities are rated two notches lower than the company's long-term issuer credit rating to reflect the securities' subordinated status and optional deferability, S&P said.

© 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.