Moody’s gives China Jinjiang bond Ba3

Moody's Investors Service said it assigned a corporate family rating of Ba2 to China Jinjiang Environment Holding Co. Ltd. (CJE) and a Ba3 senior unsecured rating to its proposed dollar-denominated bond issuance.

The outlook is stable.

Bond proceeds will be used mainly for the company's overseas investments.

"The Ba2 rating reflects CJE's solid market position and geographically diversified waste-to-energy (WTE) assets in China, fairly high visibility of cash flows, and the currently favorable industry policies that support its credit profile over the next one to two years," Moody's analyst Ralph Ng said in a news release.

"At the same time, the rating reflects potential challenges associated with CJE's ambitions for overseas expansion, including India. Such an expansion brings with it the potential for higher business and regulatory risks, especially given CJE's limited experience in those markets compared to its entrenched position in China."

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