Moody’s affirms Shanghai Electric

Moody's Investors Service has said it affirmed the Baa3 issuer ratings of Shanghai Electric Holding Group Co., Ltd. and its key subsidiary, Shanghai Electric Group Co. Ltd.

At the same time, Moody's affirmed Shanghai Electric Group's ba3 baseline credit assessment.

Moody's also affirmed the Baa3 rating of the senior unsecured bond issued by Shanghai Electric Group Global Investment Ltd. and guaranteed by Shanghai Electric Group.

The outlook on all ratings remains negative.

“The affirmation reflects Moody's expectation that SEGC and SHE will gradually deleverage as earnings improve due to a rebound in new orders for its core power equipment products,” Gerwin Ho, a Moody's vice president and senior credit officer, said in a news release.

“The rating action also considers the companies' leading positions in energy and industrial equipment sectors, providing certain demand resilience for their energy products; and a high likelihood of support from the Government of China (A1 stable) through the Shanghai government in times of need.”

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