Moody's rates China General notes A2

Moody's Investors Service said it assigned an A2 senior unsecured rating to China General Nuclear Power Corp.'s proposed dollar-denominated notes drawdown.

The notes will be issued by its wholly owned subsidiary, CGNPC International Ltd.'s medium-term note program.

The notes will be unconditionally and irrevocably guaranteed by China General, Moody's said.

The outlook is stable.

The proceeds will be used to refinance existing debt and for general corporate purposes, the agency said.

Moody's said it expects the size of the drawdown to be manageable within the company's A2 issuer rating.

The ratings also incorporate the company's baseline credit assessment of Ba2 and six-notch uplift based on an expectation of a very high level of support from and a high level of dependence on China's central government in times of need, the agency said.

The ratings also reflect the company's high financial leverage, driven by its debt-funded capital expansion, policy-driven nuclear power additions and overseas investments, Moody's said.

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