Moody's rates Tianqi Lithium bonds Baa3

Moody's Investors Service said it assigned a first-time Baa3 issuer rating to Tianqi Lithium Corp.

The agency also said it assigned a Baa3 senior unsecured rating to the proposed bonds to be issued by Tianqi Finco Co., Ltd., an indirectly wholly owned subsidiary of Tianqi Lithium.

The outlook is stable.

The ratings reflect an expectation that Tianqi Lithium will complete the bond issuance upon satisfactory terms and conditions, including proper registrations with the National Development and Reform Commission and the State Administration of Foreign Exchange in China, Moody's explained.

The proceeds will be used for general corporate purposes, the agency noted.

The ratings also consider the positive demand outlook for lithium chemicals products, the company's strong position in the lithium chemicals industry and its robust profitability and low leverage, Moody's said.

Tempering these strengths are product concentration, limited revenue scale and exposure to regulatory risks, the agency said.

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