Moody’s applies Baa3 to Binhai bond

Moody's Investors Service said it assigned a provisional Baa3 rating to the proposed dollar-denominated senior unsecured bond to be issued by Binhai Investment Co. Ltd. (BICL).

The outlook is stable.

The proposed bond will be used to refinance a RMB 500 million bond maturing in October 2015 and to prepay a HK$775 million secured syndicated loan. Remaining proceeds will be used for general working capital.

"The (P)Baa3 rating is underpinned by BICL's strong growth momentum in Tianjin Binhai New Area and the favorable market dynamics, which support the resilience of its revenue growth," Moody's vice president and senior analyst Ada Li said in a news release.

"Nevertheless, the rating is constrained by its reliance on one-off connection service fees, its relatively small scale and highly concentrated businesses in Tianjin, and weak financial metrics."

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