Moody’s rates Metallurgical, notes Baa2

Moody's Investors Service said it assigned a Baa2 issuer rating to Metallurgical Corp. of China Ltd. (MCC).

The agency also assigned a Baa2 rating to the proposed dollar-denominated senior unsecured notes to be issued by MCC Holding (Hong Kong) Corp. Ltd. and guaranteed by Metallurgical.

Proceeds will be used for general corporate purposes, including the refinancing of Metallurgical’s existing debt.

The outlook is stable.

"MCC's Baa2 issuer rating incorporates its standalone credit strength – which is equivalent to a Ba2 rating level – and a three-notch uplift, based on our expectation that the company will receive strong support from its parent, China Metallurgical Group Corporation (CMGC, Baa2 stable), in times of stress," Moody's vice president and senior credit officer Chenyi Lu said in a news release.

The high likelihood of extraordinary support from China Metallurgical Group Corp. mainly reflects Metallurgical’s high strategic importance to its parent, the agency explained.

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