CRCC, one of the largest integrated construction companies in China, focuses on railway, highway, and subway construction.
According to Moody's Investors Service, CRCC's completion of a non-public equity placement is credit positive, but has no immediate impact on its A3 issuer rating. Chenyi Lu, a Moody's Vice President and Senior Analyst, stated:
"CRCC's private equity placement is credit positive as the proceeds will alleviate debt funding needs to support its build-transfer (BT) and build-operate-transfer (BOT) operations. However, any impact on CRCC's financial leverage will be moderate, given the small size of the transaction relative to the company's total debt."
CRCC is 55.73%-owned by China Railway Construction Corp (CRCCG), a central state-owned firm. The company is under the supervision of the State Council of the People's Republic of China. Since February 2008, A shares and H shares of CRCC are listed on the Shanghai and Hong Kong stock exchanges.