Moody's shifts China Minmetals view to positive

Moody's Investors Service said it affirmed the Baa1 issuer rating of China Minmetals Corp. and changed its outlook to positive from stable.

Moody's also affirmed the Baa1 senior unsecured rating on the bonds issued by China Minmetals and the Baa1 senior unsecured rating on the bonds issued by Minmetals Bounteous Finance (BVI) Ltd. and guaranteed by China Minmetals.

The agency also upgraded China Minmetals’ baseline credit assessment to ba2 from ba3.

"The upgrade of China Minmetals' BCA and change in rating outlook to positive reflect the improving stand-alone credit profile of China Minmetals' key subsidiary China Metallurgical Group Corp. (CMGC), which accounted for close to half of the company's businesses. The positive outlook also reflects China Minmetals' conservative financial policy in lowering its leverage, which will be strong for its rating level over the next 12-18 months," said Chenyi Lu, a Moody's vice president and senior credit officer, in a press release.

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