Moody’s assigns Powerlong notes B2

Moody’s Investors Service said it assigned a B2 rating to Powerlong Real Estate Holdings Ltd.’s proposed senior unsecured dollar-denominated notes.

The B2 rating is one notch lower than Powerlong’s issuer rating due to structural subordination risk. “This risk reflects the fact that the majority of claims are at the operating subsidiaries and have priority over Powerlong’s senior unsecured claims in a bankruptcy scenario,” Moody’s said in a press release.

Powerlong plans to use the proceeds to refinance its offshore debt.

The notes will improve Powerlong’s liquidity profile and not materially affect its credit metrics because the company will use the proceeds to refinance debt, Moody’s said.

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