Moody’s rates China Jianyin Investment, notes A2

Moody's Investors Service said it assigned an A2 issuer rating to China Jianyin Investment Ltd. (JIC).

At the same time, the agency assigned an A2 senior unsecured rating to the proposed notes to be issued by JIC Zhixin Ltd. and guaranteed by JIC.

The outlook is stable.

Moody’s said JIC's A2 issuer rating incorporates its baa2 baseline credit assessment (BCA) and a three-notch uplift based on the agency’s assessment of a high level of support from the Government of China (A1 stable) to JIC in times of need.

Moody's high support assessment reflects the following factors:

• JIC's 100% ultimate ownership by the Chinese government through China Investment Corp. (CIC);

• JIC's status as an important investment platform of the Chinese sovereign wealth fund under CIC;

• JIC's unique background and close linkage with the central government, as indicated by its use as a vehicle by the government to bailout and restructure underperforming securities and trust companies in the financial service industry; and

• The strong track record of support from the Chinese government to JIC, such as the provision of funding in past policy mandates.

“The BCA of baa2 is underpinned by JIC's low leverage – as measured by market value-based leverage (MVL) – strong liquidity profile, and its prudent investment and financial management,” the agency said in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.