Moody’s stabilizes Shanghai Electric view

Moody’s Investors Service said it revised its outlook for Shanghai Electric Holding Group Co., Ltd. (SEGC) and its key subsidiary, Shanghai Electric Group Co. Ltd. (SHE) to stable from negative and affirmed their Baa3 ratings. The agency also affirmed the Baa3 ratings of the senior unsecured bonds issued by Shanghai Electric Group Global Investment Ltd. and guaranteed by SEGC.

"The rating affirmation and outlook change reflect Moody's expectation that strong new order flow for core power equipment will result in a steady improvement in earnings and cash generation for SEGC and SHE over the next 12-18 months. The improvement, coupled with the management's proactive action to reduce debt, will enable the companies to continue deleveraging over the next 12-18 months," said Gerwin Ho, a Moody's vice president and senior credit officer, in a press release.

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