Moody’s upgrades China National Bluestar

Moody’s Investors Service said it upgraded China National Bluestar (Group) Co., Ltd.’s issuer rating to Baa2 from Baa3.

Moody’s also said it removed the provisional status and upgraded to Baa2 from provisional Baa3 the senior unsecured rating of the $500 million bonds due 2018 and $500 million bonds due 2020 that were issued by Bluestar Finance Holdings Ltd., a wholly owned subsidiary of China National Bluestar.

The bonds are guaranteed by China National Bluestar and supported by a keepwell deed and other deeds provided to the bond trustee by its parent, China National Chemical Corp. (ChemChina).

The outlook is stable.

The ratings incorporate the fundamental credit profile and a three-notch parental uplift based on an expectation that the company will receive strong support from its parent, ChemChina, in times of need, Moody’s said.

The upgrades reflect a further strengthening of the link between China National Bluestar and ChemChina, the agency said.

China National Bluestar is majority owned by ChemChina and plays an important role in carrying out its parent’s strategy of innovation and investments in specialty chemicals, Moody’s said.

It also significantly contributes to the sales and earnings of ChemChina, the agency said.

© 2015 Prospect News.
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