Moody's might upgrade Chinese enhanced bonds

Moody's Investors Service said it placed on review for upgrade 17 bonds backed by standby letters of credit provided by banks in China and Hong Kong.

The following bonds are affected:

• The $480 million 4.25% credit-enhanced bonds due 2016 issued by Zijin Mining Group Co., Ltd.’s Zijin International Finance Co. Ltd., which are rated A1;

• The $900 million 3.95% credit-enhanced bonds due 2018 issued by Haitong International Securities Group Ltd.’s Haitong International Finance Holdings Ltd., which are rated A1;

• The $500 million 2.5% credit-enhanced bonds due 2017 issued by China Great Wall Asset Management Corp.’s China Great Wall International Holdings Ltd., which are rated A1;

• China Merchants Land Ltd.’s $500 million 4.021% credit-enhanced bonds due 2018, which are rated A2;

• The $500 million 4.25% credit-enhanced bonds due 2019 issued by China Shipping Container Lines Co. Ltd.’s China Shipping Overseas Finance 2013 Ltd., which are rated A1;

• China ZhengTong Auto Services Holdings Ltd.’s $335 million 4.5% credit-enhanced bonds due 2018, which are rated A1;

• The $500 million 3.625% credit-enhanced bonds due 2019 issued by Aluminum Corp. of China Ltd.’s Chinalco Finance Holdings Ltd., which are rated A1;

• Construction International (Hong Kong) Co. Ltd.’s $100 million 3% credit-enhanced bonds due 2017, which are rated A1;

• The $1 billion 4% credit-enhanced bonds due 2022 issued by China Cosco Holdings Co. Ltd.’s Cosco Finance (2011) Ltd., which are rated A1;

• The $800 million 2.75% credit-enhanced bonds due 2016 issued by China State Shipbuilding Corp.’s CSSC Capital 2013 Ltd., which are rated A1;

• The €500 million 1.7% credit-enhanced bonds due 2018 issued by China State Shipbuilding’s CSSC Capital 2015 Ltd., which are rated A1;

• The $500 million 3.625% credit-enhanced bonds due 2019 issued by Guotai Junan International Holdings Ltd.’s Guotai Junan Financial Holdings (BVI) Ltd., which are rated A1;

• Hainan Airlines (Hong Kong) Co., Ltd.’s $500 million 3.625% credit-enhanced bonds due 2020, which are rated A1;

• The $400 million 3.625% credit-enhanced bonds due 2019 issued by Huatai Securities Co., Ltd.’s Huatai International Finance I Ltd., which are rated A1;

• MCC Holding (Hong Kong) Corp. Ltd.’s $500 million 2.625% credit-enhanced bonds due 2017, which are rated A1;

• Tewoo (H.K.) Ltd.’s $400 million 2.875% credit-enhanced bonds due 2017, which are rated A1; and

• Zhuhai Da Heng Qin Investment Co., Ltd.’s RMB 1.5 billion 4.75 % credit-enhanced bonds due 2017, which are rated Baa1.

The agency said the main drivers for the review are the updates to its banking and credit substitution methodologies. More specifically, the actions follow the change to using a counterparty risk assessment rather than the senior unsecured debt rating for banks that act as standby letter-of-credit providers.

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