Moody’s: Shanghai Electric Power, bond Baa2

Moody's Investors Service said it assigned a Baa2 issuer rating to Shanghai Electric Power Co. Ltd. (SEP).

At the same time, the agency assigned a provisional Baa2 senior unsecured rating to the proposed bond to be issued by Shanghai Electric Power Finance Ltd., a wholly owned subsidiary, unconditionally and irrevocably guaranteed by SEP.

The outlook is stable.

Proceeds will be used primarily for general corporate purposes and working capital.

Moody's will remove the provisional status of the bond rating upon completion of the issuance on satisfactory terms.

SEP's Baa2 rating combines its standalone credit strength and a three-notch uplift based on strong expected support from its parent China Power Investment Corp. (CPI, unrated).

"SEP's standalone rating primarily reflects its solid market position in Shanghai, quality power generation assets with a high level of operational efficiency, and ongoing operational support from the parent company," Moody's vice president and senior analyst Ada Li said in a news release.

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