Moody’s rates Beijing State-Owned Assets bond A3

Moody’s Investors Service said it assigned a first-time A2 issuer rating to Beijing State-Owned Assets Management Co., Ltd.

Moody’s also said it assigned an A3 senior unsecured rating to the proposed bond to be issued by Beijing State-Owned Assets Management (Hong Kong) Co. Ltd., which is 100% owned by Beijing State-Owned Assets.

The bond is supported by a keepwell and liquidity deeds, Moody’s said.

The outlook is stable.

The proceeds will be used to refinance certain existing indebtedness and for Beijing State-Owned’s working capital and general corporate purposes, the agency said.

The ratings incorporate a baseline credit assessment of Baa3 and a four-notch uplift based on an expectation of a very high level of support from the Beijing municipal government, Moody’s said.

The four-notch rating uplift reflects the company’s roles as a key investment manager for the Beijing government to manage a large volume of state-owned assets and as an entity that the government can rely on to achieve its policy goals or to carry out crucial projects, the agency said.

The ratings also reflect an expectation that Chinese central government will support the city’s efforts to provide aid to Beijing State-Owned in the case of stress given its undertaking of some projects that carry high reputation risk for the Chinese government, Moody’s said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.