Moody’s assigns China Gezhouba securities Baa3

Moody’s Investors Service said it assigned a Baa3 rating to the proposed subordinated perpetual securities to be issued by China Gezhouba Group (Hong Kong) Overseas Investment Co., Ltd., and guaranteed by China Gezhouba Group Co. Ltd., which the agency rates Baa2.

The securities’ Baa3 is a notch lower than China Gezhouba’s issuer rating to reflect the subordinated status of the notes.

China Gezhouba will use the proceeds for overseas project financing and general corporate purposes.

“The proposed perpetual securities will help improve CGGC’s liquidity and debt maturity profile, and will not materially impact its credit metrics because the issuance amount is small relative to CGGC’s total adjusted debt,” said Chenyi Lu, a Moody’s vice president and senior credit officer and the lead international analyst for CGGC, in a press release.

The outlook is stable.

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