Moody's: Sinochem securities Baa3

Moody's Investors Service said it assigned a provisional Baa3 rating to the subordinated guaranteed perpetual capital securities to be issued by Sinochem Global Capital Co., Ltd. and guaranteed by Sinochem Hong Kong (Group) Co. Ltd. (Sinochem HK).

Moody's also affirmed Sinochem HK's Baa1 issuer rating and the Baa1 rating of the bonds issued by Sinochem Overseas Capital Co. Ltd. and guaranteed by Sinochem HK.

The outlook is stable.

"The (P)Baa3 rating assigned to Sinochem HK's hybrid debt is two notches below the company's senior unsecured rating of Baa1. This rating differential reflects the deeply subordinated nature of the hybrid debt as it ranks behind Sinochem HK's senior debt obligations in terms of the priority of claims; and it provides Sinochem HK with the option to defer coupons on a cumulative basis," Moody's vice president and senior analyst Alan Gao said in a news release.

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