Moody’s rates GCL Intelligent Energy bonds B2

Moody’s Investors Service said it provisionally rated GCL Intelligent Energy (BVI) Ltd.’s proposed U.S. dollar-denominated bond offering (P)B2.

GCL is a wholly owned unit of GCL Intelligent Energy Co., Ltd., and it is unconditionally guaranteeing the bonds.

The rating is a notch below the parent’s corporate family rating of B1. Moody’s doesn’t see the bond sale materially affecting the parent company’s credit profile because the net proceeds will be used to refinance existing debt, said Ralph Ng, a Moody’s assistant vice president and analyst, in a news release.

At least four of the parent company’s new cogeneration plants will start operations this year and start contributing to cash flow, providing a modest improvement in credit metrics in 2019, Moody’s said.

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