Moody's rates MTR notes Aa1

Moody's Investors Service said it assigned an Aa1 rating to the senior unsecured fixed-rate notes to be issued by MTR Corp. (C.I.) Ltd., a wholly-owned financing subsidiary of MTR Corp. Ltd.

The outlook is stable.

The RMB 1billion two-year notes are irrevocably and unconditionally guaranteed by MTR and are pursuant to its rated $3 billion debt issuance program.

The proceeds will be used to provide financing for MTR's railway project in Shenzhen, China, the agency said.

The rating reflects its underlying credit strength, which is equivalent to A2 on the global rating scale, Moody's said, and the very strong support expected from the Hong Kong government.

The underlying credit strength of MTR considers its strategic role as the sole railway operator in Hong Kong, its strong market position and favorable operating environment, the agency said.

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