Fitch applies BBB to Weichai securities

Fitch Ratings said it assigned Weichai Power Co., Ltd.'s (BBB+/stable) proposed dollar-denominated senior perpetual capital securities an expected rating of BBB(EXP).

The proposed perpetual capital securities will be issued by Weichai International Hong Kong Energy Group Co., Ltd., and unconditionally and irrevocably guaranteed by Weichai.

Fitch said it expects to accord no equity credit to the proposed issuance in the agency's evaluation of Weichai's capital structure and leverage, as this instrument ranks pari passu with Weichai's other unsecured, unconditional and unsubordinated obligations.

The proposed perpetual securities are rated one notch below Weichai's BBB+ issuer default rating, reflecting the notes' coupon-deferral feature, the agency explained.

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