Moody's rates Guangzhou City Construction notes A3

Moody's Investors Service said it assigned a first-time A3 issuer rating to Guangzhou City Construction Investment Group Co., Ltd.

Moody's also said it assigned an A3 rating to the proposed dollar-denominated senior unsecured notes to be issued by Smooth Tone (HK) Ltd., and guaranteed by Guangzhou City Construction.

The outlook is stable.

The proceeds will be used for investment in big data business, aircraft leasing and other general corporate purposes, Moody's said.

The ratings consider the company's baseline credit assessment of Ba2 and a five-notch uplift, reflecting the assessment of a very high level of support from the Guangzhou city government to the company in times of need, the agency said.

Moody's said the company is wholly owned by the Guangzhou city government and is one of five quasi-welfare state-owned enterprises in the city that have mandates in relation to non-profit public infrastructure projects in designated sectors.

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