Moody’s rates Hengjian, notes A3

Moody's Investors Service said it assigned an A3 issuer rating to Guangdong Hengjian Investment Holding Co., Ltd. (Hengjian).

At the same time, the agency assigned an A3 senior unsecured rating to the proposed bond to be issued by Hengjian International Investment Ltd., and which is unconditionally and irrevocably guaranteed by Hengjian.

The outlook is stable.

Proceeds will be used for general corporate purposes and to refinance existing debt.

"Hengjian's A3 issuer rating reflects its baseline credit assessment (BCA) of baa3 and a three-notch uplift based on the high level of support expected from the Guangdong Provincial Government under Moody's joint-default analysis approach for government-related issuers," Moody's vice president and senior analyst Ivy Poon said in a news release.

"The three-notch rating uplift reflects Hengjian's high strategic importance to the Guangdong Government through its policy function of optimizing the allocation and structure of state-owned assets. There is a strong track record of financial support from the government for the company's business and investments."

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