Fitch Ratings has placed a BBB+ rating on Power Construction Corp. of China's (SHA:601669) proposed US dollar senior unsecured bonds, according to a recent release.

The company will unconditionally and irrevocably guarantee the bonds, which will be issued by its indirectly owned subsidiary DianJian Haiyu.

The proposed bonds' rating is similar to the company's senior unsecured debt rating as they serve as its direct, general, unsubordinated, unconditional, and unsecured obligations.

The company's support score of 30 points and "b+" standalone credit profile point to two rating notches below China's sovereign rating, while its stable outlook reflects that of the sovereign, Fitch said.

Fitch assesses the company as having "strong" decision-making and oversight due to the stringent oversight of the central State-owned Assets Supervision and Administration Commission.

The rating agency also has a "strong" view of the company's preservation of its government policy role since it is a driver of planning, survey, design, and construction of clean-energy projects in China.

The company gains support from continued financing from policy and state-owned banks as it expands in China and abroad, Fitch said.

Fitch sees the company's contagion risk as "strong."

The rating agency forecasts the increase in the company's leverage to ease amid gradually reduced negative free cash flow.