Moody’s lifts Guangzhou Metro

Moody's Investors Service said it upgraded Guangzhou Metro Group Co., Ltd.'s issuer rating to A1 from A3.

The agency also upgraded the backed senior unsecured debt ratings for Guangzhou Metro Investment Finance (BVI) Ltd. to A2 from Baa1.

The outlook remains stable.

Moody’s said the upgrade reflects the strengthened credit profile of Guangzhou Metro, following the agency’s updated view that the China central government's A1 rating is a better indicator in assessing support for regional and local government-owned government-related issuers.

The agency said Guangzhou Metro is in a very unique position, because apart from benefiting from Moody's assessment of an A1 rating as the indicator of support, its credit profile is underpinned by a continued expectation of very high support from the central government in times of need, due to the entity’s importance to national policy objectives and the priorities set by the central government.

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