Moody's rates Contemporary Amperex notes Baa1

Moody's Investors Service said it assigned a Baa1 rating to the planned backed senior unsecured notes to be sold by Contemporary Ruiding Development Ltd., a wholly owned subsidiary of Contemporary Amperex Technology Co., Ltd., which will guarantee the notes.

CATL's Baa1 rating reflects its strong market position as a leading global supplier of electric vehicle lithium-ion batteries with strong growth prospects, the benefits it gets from the industry's high barriers to entry, its high revenue visibility and strong customer base, Moody’s said.

CATL will use the proceeds for general corporate purposes.

"The proposed notes will improve CATL's already strong liquidity and debt maturity profile without substantially affecting its credit metrics. This is because the debt increase will be offset by higher earnings and a stronger net cash position," said Chenyi Lu, a Moody's vice president and senior credit officer, in a press release.

The outlook is stable.

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