Moody's rates China Resources notes Baa3

Moody's Investor Service said it assigned a Baa2 corporate family rating to China Resources Power Holdings Co. Ltd. and a provisional Baa3 rating to its proposed issuance of senior unsecured bonds.

The outlook is stable.

Proceeds will be used to fund capital expenditures in connection with its coal-fired power generation projects constructions, coal mine constructions, acquisitions and operations and wind farm constructions, and general working capital.

"CR Power's Baa2 rating reflects its sound operating history, geographically diversified power generating assets, and strong management team with a good track record in executing expansion without compromising financial discipline and operating efficiency," Jennifer Wong, a Moody's assistant vice president, said in a statement.

The rating takes into account the evolving regulatory environment in China's power sector and the company's large expansion plans, the agency noted.

"Despite a track record of financial discipline, the company is unlikely to de-leverage significantly over the medium term given its large planned capex to expand its generating capacity and internal coal reserves," Wong said.

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