Moody's may upgrade Panva Gas

Moody's Investors Service said it placed Panva Gas Holdings Ltd.'s Ba2 corporate family and senior unsecured bond ratings under review for possible upgrade.

The action follows Panva's announcement that it will issue new shares to Hong Kong and China Gas and, in return, acquire ten piped gas operating projects in Eastern China. Accordingly, the transaction will involve no cash payment, Moody's said.

The potential upgrade reflects Moody's view that the acquisition of ten piped gas projects is likely to strengthen the competitiveness of Panva, as piped gas sales volume is expected to more than double as the acquired projects have a high concentration of industrial and commercial users.

The action also reflects the potential benefits derived from the new shareholding structure, including any potential upside to Panva's credit profile in terms of operating synergies, financial enhancements and corporate governance standards, the agency said.

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