Moody's rates Delong B2, notes B3

Moody's Investors Service said it assigned a first-time provisional B2 corporate family rating to Delong Holdings Ltd., along with a provisional B3 senior unsecured rating to its proposed dollar-denominated senior unsecured bond issues.

The outlook is stable.

The proceeds will be used to repay debt, general corporate purposes and fund future acquisitions.

The agency said it expects to remove the provisional status of the ratings when the bond transaction is completed and its terms and conditions are satisfactory, Moody's said.

If the issuance fails to go ahead, the agency said it will reassess Delong's rating and consider the company's need for capital to fund its expansion under its business strategy to stay competitive.

Delong's efficient production line and waste management initiatives save overall production costs, Moody's said. This partially mitigates margin pressure in the volatile steel manufacturing industry, the agency added.

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