Moody’s rates Si Chuan Province JuYang notes B3

Moody's Investors Service said it assigned a B3 rating to the proposed senior unsecured notes to be issued by Zhong Yi Holdings Ltd. – a wholly owned subsidiary of Si Chuan Province JuYang Group Ltd. (Juyang) – and unconditionally and irrevocably guaranteed by Juyang.

The outlook is stable.

Net proceeds will be used for general working capital purposes.

Moody’s said the rating reflects its expectation that Juyang will complete the bond issuance on satisfactory terms and conditions, including proper registrations with the National Development and Reform Commission and the State Administration of Foreign Exchange in China (A1 stable).

"The proposed senior unsecured notes will extend Juyang's debt maturity and will not have a material impact on its credit metrics, as we expect it will use the proposed bond proceeds to partially pay down its secured debt," Moody's vice president and senior analyst Stephanie Lau said in a news release.

The agency added that it expects Juyang's credit metrics will remain appropriate for its B2 corporate family rating, even if the proposed dollar-denominated senior unsecured notes are issued.

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