Moody's rates Yanghou Economic notes Ba1

Moody's Investors Service said it assigned a first-time Ba1 corporate family rating to Yangzhou Economic and Technological Development Zone Development Corp.

Moody's also said it assigned a Ba1 rating to the proposed dollar-denominated senior unsecured notes to be issued by the company.

The outlook is stable.

The proceeds will be used for general corporate purposes, the agency said.

The ratings combine its B1 baseline credit assessment and an assessment that there is a strong likelihood that the company will receive support from the government of China, along with its high level of dependence on China, Moody's said.

The ratings also consider the company's primary role in economic development, its ultimate 100% ownership by the Yangzhou government and track record of receiving strong government support, the agency said.

The ratings are constrained by its large investment need and the sizable amount of external guarantees and lending to other state-owned enterprises in Yangzhou City, which entails significant contingent liabilities, Moody's said.

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