Moody's rates Anhui Provincial Investment notes A3

Moody's Investors Service said it assigned a first-time A3 issuer rating to Anhui Provincial Investment Group Holding Co., Ltd., along with an A3 senior unsecured rating to its proposed notes.

The outlook is stable.

The proceeds will be used for general corporate purposes, including the refinancing and funding of future investments, Moody's said.

The ratings primarily combine the company's ba1 baseline credit assessment and an assessment of a "high" likelihood of support from and "high" level of dependence on the government of China when in need, Moody's explained.

The company is the sole entity appointed by Anhui government for joint venture railway projects in Anhui province, the agency said.

Moody's said it considers that the national railway projects have high strategic importance to the Chinese government.

The ratings are underpinned by the company's large investment portfolio with a high level of business diversification, recurring large capital injections and subsidies from the Anhui government, the agency said.

The ratings are constrained by the high debt burden associated with railway investments, high geographic concentration and limited track record of its investments in industrial funds, Moody's said.

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