Moody’s gives A3 to China Minmetals, notes

Moody's Investors Service said it assigned an A3 issuer rating to China Minmetals Corp.

The outlook is stable.

The agency also assigned an A3 rating to the proposed dollar-denominated senior unsecured bonds to be issued by Minmetals Bounteous Finance (BVI) Ltd. and guaranteed by China Minmetals.

Proceeds will be used for general corporate purpose and refinancing of debt.

China Minmetals' A3 ratings combines its baseline credit assessment of ba2 and a five-notch uplift based on an expected very high level of support from the Chinese government (Aa3 stable) under Moody's joint default analysis approach for government-related issuers.

"The five-notch rating uplift is underpinned by China Minmetals' strategic importance to China's metal resources security, its full ownership by the Chinese government, and its dominant position in supplying metals to the state," Joe Morrison, Moody's vice president, senior credit officer and international lead analyst for China Minmetals, said in a news release.

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