Moody's gives Seazen notes Ba2

Moody's Investors Service said it gave a Ba2 senior unsecured rating to the planned dollar-denominated notes to be issued by New Metro Global Ltd. and guaranteed by Seazen Group Ltd. New Metro is a wholly-owned subsidiary of Ba1-rated Seazen Holdings Co., Ltd., which in turn is a 67.2%-owned subsidiary of Seazen Group.

Seazen Group's Ba2 senior unsecured bond rating is a notch below its corporate family rating because of structural subordination risk. Most of Seazen Group's claims are at the subsidiary level and take priority over claims at the holding company in a bankruptcy, the agency said.

Seazen Group will use the proceeds mainly to repay offshore debt.

"The proposed issuance will extend Seazen Group's debt maturity profile without materially affecting its financial profile, as the proceeds will be mainly used to refinance existing debt," said Kaven Tsang, a Moody's senior vice president, and lead analyst for Seazen Group, in a press release.

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