Moody's rates State Power Investment notes A2

Moody's Investors Service said it assigned an A2 senior unsecured rating to the proposed senior perpetual securities to be issued by SPIC 2018 USD Senior Perpetual Bond Co. Ltd. and guaranteed by State Power Investment Corp. Ltd. (SPIC).

The outlook is stable.

The proceeds will be used to refinance the group's existing indebtedness and other general corporate purposes, Moody's said.

The proposed senior perpetual securities will rank at least equal to other unsecured unsubordinated obligations of SPIC, the agency said.

SPIC's overall credit profile will not be materially affected by the issuance of the perpetual securities because the proceeds will be mainly used to refinance existing indebtedness, Moody's said, and the scale of the issuance will be manageable for SPIC.

The ratings reflect the company's leading market position with sizable installed capacity and diversified fuel mix, the agency said, and the fact that the company benefits from favorable policies on renewable energy.

The ratings are constrained by its high level of financial leverage, evolving regulatory regime and challenging operating environment, Moody's said.

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