Moody's assigns MCC securities Baa2

Moody's Investors Service said it assigned a Baa2 rating to the proposed subordinated perpetual securities to be issued by MCC Holding (Hong Kong) Corp. Ltd. and guaranteed by Metallurgical Corp. of China Ltd. The outlook is stable.

The proceeds will be used to refinance debt and for the company's general corporate purposes.

The Baa2 rating on the proposed securities reflects the guarantee from Metallurgical Corp., as well as that the securities are subordinated to the senior unsecured debt of Metallurgical Corp., but rank above its junior subordinated debt and common stock.

The securities issuance will not materially increase the company's debt leverage, because the company will primarily use the proceeds to refinance debt, the agency said.

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