Moody's rates Zhejiang Hengyi bond B3

Moody's Investors Service said it assigned a first-time B2 corporate family rating to Zhejiang Hengyi Group Co., Ltd.

Moody's also said it assigned a B3 senior unsecured rating to the proposed dollar-denominated bond to be issued by Wealthy Link Global Ltd. and guaranteed by Zhejiang Hengyi.

The outlook is stable.

The rating reflects an expectation that the company will complete the bond issuance on satisfactory terms and conditions, including proper registration with the State Administration of Foreign Exchange in China, Moody's said.

The proceeds will be used to fund its petrochemical refinery project in Brunei, the agency said.

The ratings reflect the company's large business scale, strong market positions in purified terephthalic acid (PTA) and polyethylene terephthalate (PET) and diversified customer base, Moody's said.

The ratings also consider its diversified customer base and downstream textile and garment manufacturers, the agency said. The majority of these customers are in China, but concentration risk is limited because of its broad customer base, Moody's said.

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