Moody's gives Baa3 to Shuifa bonds

Moody's Investors Service said it assigned a Baa3 senior unsecured rating to the proposed guaranteed bonds to be issued by Shuifa International Holdings (BVI) Co., Ltd., a wholly owned subsidiary of Shuifa Group Co., Ltd. The bonds will be guaranteed by Shuifa, which the agency rates at Baa3 with a stable outlook.

Shuifa plans to use the proceeds for project construction and refinancing of the group's indebtedness in China.

"Shuifa's Baa3 issuer rating and the senior unsecured rating of its subsidiary's proposed guaranteed notes reflect its close alignment with the Shandong provincial government and its high strategic importance to the regional water supply, " said Ada Li, a Moody's vice president and senior credit officer, in a press release.

"The proposed issuance will not materially affect Shuifa's credit metrics, as the size of the issuance is manageable relative to the company's overall scale, and part of the net proceeds will be used to refinance existing debt," Li added.

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