S&P Global Ratings has placed a BBB long-term issue rating on HKT Capital's proposed U.S. dollar notes, according to a Tuesday release.

HKT Capital and parent Hong Kong Telecommunications act as guarantors of the $3 billion medium-term note program under which the proposed notes will be issued, S&P said.

The proposed notes' rating is in line with the company's issuer credit rating, considering limited subordination risk in the capital structure, S&P said.

The company's rating reflects S&P's view that the group will sustain its leading status among Hong Kong's telecommunications players while maintaining steady debt leverage.

The rating agency does not expect a significant change in the capital structure of Hong Kong Telecommunications and HKT Trust and HKT (HKG:6823), which fully owns the telco through HKT Group Holdings, following the issuance.

The company plans to channel the proceeds from the issuance to refinance its debt maturities, the rating agency said.