Moody’s rates China Three Gorges notes A1

Moody’s Investors Service said it assigned an A1 senior unsecured rating to the proposed backed senior unsecured notes to be issued by Three Gorges Finance I (Cayman Islands) Ltd., a wholly owned subsidiary of China Three Gorges Corp. (A1 stable).

The senior notes will be unconditionally and irrevocably guaranteed by China Three Gorges.

The outlook is stable.

China Three Gorges plans to use the net proceeds for refinancing of debt and general corporate purposes.

“CTG's A1 issuer rating and the senior unsecured rating on its proposed guaranteed notes reflect the company's sound standalone credit profile, underpinned by its position as the world's leading hydropower company and our expectation of a very high level of support from the Chinese government, if needed,” Ada Li, Moody's vice president and senior credit officer, said in a news release.

“The proposed issuance will not materially affect CTG's credit metrics, as the size of the issuance is manageable relative to the company's overall scale, and because part of the net proceeds will be used to refinance existing debt.”

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