Moody's rates Zhuji Baa3

Moody's Investors Service said it assigned a first-time Baa3 issuer rating to Zhuji State-owned Assets Management Co., Ltd.

The outlook is stable.

Zhuji's Baa3 rating primarily combines its Ba3 baseline credit assessment and an assessment of the strong likelihood of support that the company would receive from and high level of dependence on the government of China if needed, Moody's said.

The strong level of support reflects Zhuji's close linkage with and its ultimate 100% ownership by the Zhuji government, along with its important role in holding about 75% of the Zhuji government's state-owned operational assets, the agency explained.

The company has a strong track record of receiving government support, including in excess of RMB 20 billion in government grants and cash injections between 2015 and 2017, Moody's said.

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