Moody’s: Guangxi Communications unchanged by merger

Moody's Investors Service said that Guangxi Communications Investment Group Corp Ltd.'s (Baa3) merger with Guangxi Railway Investment Group Co. Ltd. will not have an immediate impact on Guangxi Communications’ issuer rating or stable outlook.

“The merger will strengthen GXCI's strategic importance to the Guangxi government, but is likely to be followed by rising business and financial risk that is credit negative to its standalone credit profile,” the agency said in a news release.

“That said, the merger is still in its very early stages and details are yet to be announced. Therefore, it will not have an immediate impact of GXCI's issuer rating or stable outlook.”

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