Moody’s downgrades Shanghai Electric

Moody’s Investors Service said it downgraded to A3 from A2 the issuer ratings of Shanghai Electric (Group) Corp. (SEGC) and its key subsidiary, Shanghai Electric Group Co. Ltd. (SHE).

At the same time, Moody’s downgraded to A3 from A2 the ratings of the senior unsecured bonds issued by Shanghai Electric Group Global Investment Ltd. and guaranteed by SEGC.

“The downgrade of SEGC and SHE reflects our expectation that both companies’ leverage will remain elevated over the next one to two years, mainly driven by ongoing acquisitions to transform their businesses,” said Gerwin Ho, a Moody’s vice president and senior credit officer, in a press release.

Moody’s changed the outlook to stable from negative. The agency sees SEGC and SHE having stable business and financial profiles over the next 12-18 months, Moody’s said.

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