Moody’s: Guangzhou Communications Baa1, bond Baa2

Moody's Investors Service said it assigned a Baa1 issuer rating to Guangzhou Communications Investment Group Co., Ltd.

At the same time, the agency assigned a provisional Baa2 senior unsecured rating to the proposed bond to be issued by Express (BVI) 2015 Ltd., and guaranteed by Dynasty Easy Ltd. (unrated). Dynasty Easy is a wholly owned subsidiary of Guangzhou Communications.

The bond is supported by a keepwell and liquidity support deed and a deed of equity purchase undertaking between Guangzhou, Dynasty Easy, Express (BVI), and the bond trustee.

The outlook is stable.

Proceeds will be used primarily for general corporate purposes through lending to other members of the group.

Moody’s said the Baa1 issuer rating combines the baseline credit assessment of ba1 and a three-notch uplift based on the agency’s expectation of high support for the company from the Guangzhou Municipal government, under Moody's joint-default analysis approach for government-related issuers.

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