Moody's assigns Towngas securities A3

Moody's Investors Service said it assigned an A3 rating with a stable outlook to the perpetual subordinated guaranteed capital securities to be issued by Towngas (Finance) Ltd., and irrevocably and unconditionally guaranteed on a subordinated basis by Hong Kong and China Gas Co. Ltd. (A1 stable).

The A3 rating reflects the cumulative and deeply subordinated nature of the proposed perpetual hybrid securities. Moody's considers these securities as hybrid instruments with debt and equity components.

"The proceeds of the planned perpetual hybrid securities will be used primarily to refinance existing debt and for general corporate purposes, which will improve HKCG's debt leverage and debt maturity profile," Moody's analyst Ivy Poon said in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.