Moody’s gives Greentown China debt Ba3

Moody's Investors Services said it assigned a provisional Ba3 senior unsecured debt rating to the proposed dollar-denominated senior perpetual capital securities to be issued by Apex Top Group Ltd. and irrevocably and unconditionally guaranteed by Greentown China Holdings Ltd.

At the same time, the agency affirmed Greentown China’s Ba3 corporate family rating, Ba3 senior unsecured rating for bonds due in 2020 and B1 senior unsecured rating for bonds due in 2018 and 2019.

The outlook on all ratings remains positive.

The new dollar-denominated senior perpetual capital securities will be supported by a Keepwell Deed and a Deed of Equity Interest Purchase, Investment and Liquidity Support Undertaking provided by Greentown's major shareholder, China Communications Construction Group (Ltd.) (CCCG, unrated).

The company plans to use the proceeds for refinancing existing debt and general working capital purposes.

"The Ba3 corporate family rating primarily reflects Greentown's standalone credit strengths and a two-notch rating uplift, based on our expectation that the company will receive extraordinary financial support from CCCG in times of financial distress," Moody's vice president and senior analyst Franco Leung said in a news release.

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