Moody’s rates Kunming Rail bond Baa1

Moody’s Investors Service said it assigned a Baa1 issuer rating to Kunming Rail Transit Group Co., Ltd.

At the same time, Moody's assigned a Baa1 senior unsecured rating to the proposed bond to be issued by Kunming Rail.

The outlook is stable.

The proceeds from the proposed issuance will be used for repayment of existing debt and working capital purposes.

The agency said the issuer rating combines its ba3 baseline credit assessment and a five-notch uplift based on Moody's assessment of a very high likelihood of support from, and high level of dependence on the Kunming city government and ultimately China (A1 stable) when in need.

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