Moody’s assigns Dexin notes B3

Moody’s Investors Service said it assigned Dexin China Holdings Co. Ltd.’s proposed senior unsecured dollar-denominated notes a B3 rating.

The B3 rating is one notch lower than the corporate family rating due to structural subordination risk. This risk reflects that most claims are at the operating subsidiaries and have priority over Dexin’s senior unsecured claims in a bankruptcy scenario, Moody’s said.

Dexin plans to use the proceeds to refinance offshore debt.

The notes will improve Dexin’s liquidity profile and will not hurt its credit metrics, because the company will use the proceeds mainly to refinance debt, the agency said.

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