Moody's lowers PowerChina view to negative

Moody's Investors Service said it affirmed the Baa1 issuer rating of Power Construction Corp. of China (PowerChina).

Moody's also said it affirmed the provisional Baa1 senior unsecured rating of the medium-term note program of Leader Goal International Ltd., DianJian Haiyu Ltd. and Dianjian International Finance Ltd., which are guaranteed by PowerChina.

The agency also said it affirmed the Baa1 senior unsecured ratings on the notes issued by Leader Goal International and Dianjian International Finance under the program, along with the Baa1 senior unsecured rating of notes issued by DianJian Haiyu under the program.

The Baa1 rating on the senior unsecured bonds issued by Dianjian Haixing Ltd., which are guaranteed by PowerChina, also was affirmed.

The Baa1 rating of the senior unsecured notes issued by Powerchina Real Estate Group Ltd., which is guaranteed by PowerChina, also was affirmed.

The outlooks also were revised to negative from stable.

The negative outlook reflects the higher-than-expected leverage of PowerChina and the uncertainty on the company's ability to de-leverage meaningfully in the next 18 months, Moody's said.

PowerChina's leverage will gradually decrease in the next two years against the backdrop of the Chinese government's de-leveraging policy, the agency said.

But the pace of de-leveraging remains uncertain given PowerChina's continuing investment in projects, Moody's said.

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