Moody’s rates China Water CFR, notes Ba1

Moody's Investors Service said it assigned a corporate family rating of Ba1 to China Water Affairs Group Ltd. (CWA).

At the same time, the agency assigned a Ba1 rating to the company’s proposed issuance of dollar-denominated senior unsecured notes.

Proceeds will be primarily used for general corporate purposes and refinancing.

The outlook is stable.

"The Ba1 rating reflects CWA's fairly stable business model and moderate financial profile supported by favorable long-term industry dynamics," Moody's assistant vice president and analyst Ivy Poon said in a news release.

"The limited transparency and predictability of China's regulatory framework for the water supply industry is a fundamental weakness for the company's rating."

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