Moody's rates China Forestry, bond Ba3

Moody's Investors Service said it assigned a first-time corporate family rating of Ba3 and a provisional Ba3 senior unsecured bond rating to China Forestry Holdings Co., Ltd.

The outlook is stable.

Moody's said it expects to affirm the bond rating and remove it from provisional status after the proposed bond issue is completed. The proceeds will be used to acquire forestry assets and for general corporate purposes, the agency said.

The ratings reflect the company's forestry assets, characterized by high stock density and immediately harvestable trees, Moody's said.

The rating also reflects China Forestry's low cost base, the result of its prepaid acquisition model, the agency said. This puts the company in a competitive position to acquire further assets at favorable prices despite the expected increase in demand for forestry assets over the medium term, Moody's added.

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