Moody’s rates Zhuzhou City Construction bond Baa3

Moody's Investors Service said it assigned a first-time Baa3 issuer rating to Zhuzhou City Construction Development Group Co., Ltd.

The agency also said it assigned a Baa3 senior unsecured rating to the company’s proposed bond.

The outlook is negative.

The proceeds from the proposed issuance will be used for general corporate purposes, Moody’s said.

The ratings combine a baseline credit assessment of B1 with a four-notch uplift based on the high level of support expected from the Zhuzhou municipal government, the agency said.

The ratings also reflects the company’s close linkage to Zhuzhou government given its integral role in executing public infrastructure projects and providing a broad range of public services, Moody’s said.

Owing to its policy function, the company does not seek to maximize its profit levels and its standalone credit quality is mostly shaped and financed by the Zhuzhou government, the agency added.

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