Moody’s rates Tongyi, bonds B3

Moody's Investors Service said it assigned a B3 corporate family rating to Tongyi Industrial Group Co., Ltd.

The agency also assigned a B3 senior unsecured rating to the proposed dollar-denominated bonds to be issued by Tongyi (BVI) Ltd. and guaranteed by Tongyi and Tongyi Group (HK) Ltd. Tongyi Group (HK) is a subsidiary of Tongyi and directly wholly owns Tongyi (BVI).

The outlook is stable.

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

Note proceeds will be used to refinance existing debt and for general corporate purposes.

"Tongyi's B3 CFR considers its stable earnings, steady access to raw materials, as well as its low-cost operations that support its business profile and profitability," Moody's vice president and senior analyst Stephanie Lau said in a news release.

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