Moody’s: A1 to State Development, notes

Moody's Investors Service said it assigned an A1 issuer rating to State Development & Investment Corp. (SDIC).

At the same time, the agency assigned an A1 senior unsecured rating to the proposed dollar-denominated notes to be issued by Rongshi International Finance Ltd. and guaranteed by SDIC.

The outlook is negative.

Moody’s said State Development’s A1 issuer rating primarily combines: (a) Its solid standalone credit quality, as evidenced by its baa3 baseline credit assessment (BCA); and (b) Moody's assessment of the very high likelihood that SDIC will receive extraordinary support from the Chinese government (Aa3 negative) in case of a need, which provides a five-notch uplift to the rating.

"SDIC's baa3 BCA reflects its diversified business portfolio, the strong market positions in its key business segments, such as power generation, ports, financial services and natural resources sectors, sound track record of active asset recycling, and strong access to liquidity," Moody's vice president and senior credit officer Chenyi Lu said in a news release.

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