Moody's: Want Want notes A3

Moody's Investors Service said it assigned an A3 issuer rating to Want Want China Holdings Ltd. and an A3 senior debt rating to its proposed dollar-denominated bonds to be issued by Want Want China Finance Ltd. The outlook is stable.

The proceeds will be used for debt refinancing and general working capital purposes.

The agency said Want Want's A3 issuer rating reflects its financial strength and its leading position in China's snack food markets, which are currently driven by stable and secular growth in consumption. Based on Want Want's 2012 sales revenue, Moody's estimates that the company commands 70% of China's rice cracker market and around 27% of its extruded snack market.

On the other hand, the rating recognizes that Want Want faces challenges in optimizing its operation and improving efficiency, given its large and diversified production lines, and developing new products to meet consumer tastes amidst intense competition, Moody's said.

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