Moody’s rates Shanghai Electric, bonds A2

Moody's Investors Service said it assigned an A2 issuer rating to Shanghai Electric (Group) Corp. (SEGC).

At the same time, the agency assigned an A2 rating to the proposed bonds to be issued by Shanghai Electric Group Global Investment Ltd. – an indirectly wholly owned subsidiary of SEGC – based on the unconditional and irrevocable guarantee by SEGC.

The outlook is stable.

Proceeds will be used to fund SEGC's offshore acquisitions and for general corporate uses.

Moody’s said SEGC's A2 issuer rating incorporates the group's baseline credit assessment of a3 and a one-notch uplift for the support from the Shanghai municipal government under Moody's joint default analysis approach for government related issuers.

"SEGC's BCA mainly reflects the strong credit profile of Shanghai Electric Group Co. Ltd. (SHE, A2 stable), its 58%-owned subsidiary, and representing about 80% of the group's revenues and assets," Moody's assistant vice president and analyst Jiming Zou said in a news release.

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