Moody’s rates Greentown China debt Ba3

Moody's Investors Service said it assigned a Ba3 senior unsecured rating to the proposed dollar-denominated senior perpetual capital securities to be issued by Wisdom Glory Group Ltd. and irrevocably and unconditionally guaranteed by Greentown China Holdings Ltd. (Ba3 stable).

The outlook is stable.

The proposed securities will be supported by a letter of support provided by Greentown's major shareholder, China Communications Construction Group (Ltd.) (CCCG, unrated).

Greentown plans to use the proceeds to refinance existing debt and for general working capital purposes.

"We expect that the proposed perpetual securities will extend Greentown's debt maturity profile and will not have a material impact on its credit metrics, because the proceeds will mainly be used for refinancing," Moody's vice president and senior credit officer Franco Leung said in a news release.

The agency said it considers the proposed perpetual securities as pure debt instruments and, accordingly, does not apply any equity treatment to these securities.

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