Moody's: China Resources Baa1

Moody's Investors Service said it assigned for the first-time a Baa1 issuer rating to China Resources Gas Group.

The outlook is stable.

The rating reflects its leading position in China's city piped-gas distribution industry, geographically diversified city gas projects and the support it gets from its parent, China Resources Holdings Co. Ltd., Moody's said.

Such parental support results in a one-notch uplift from its standalone Baa2 rating, the agency said.

The company has emerged as one of the largest piped-gas distributors in China, through project acquisitions and its parent company's asset injection under its incubation strategy, Moody's said.

Despite its aggressive growth and relatively short track record, the group's incubation strategy greatly reduces its initial project and financial risks, the agency said.

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