Moody's gives Baa3 to Yuyao Shuncai

Moody’s Investors Service said it gave a first-time Baa3 issuer rating to Yuyao Shuncai Investment Holding. Co., Ltd.

The agency also assigned Baa3 senior unsecured ratings to the two outstanding dollar-denominated bonds issued by Yuyao Economic Development Zone Construction Investment and Development Co., Ltd. (YEDZ), a wholly owned subsidiary of Yuyao Shuncai. Both bonds are guaranteed by Yuyao Shuncai.

"Yuyao Shuncai's Baa3 rating reflects its close linkage with the local government as a dominant local government financial vehicle (LGFV) in Yuyao city. Yuyao city is a county city under Ningbo, which is one of the five centrally planned cities in China that have close linkages with the central government," said Roy Zhang, a Moody's vice president and senior analyst, in a press release.

The agency noted Yuyao Shuncai received RMB 17 billion in support from the local government from 2018-2020.

The outlooks on both issuers are stable.

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