Moody’s gives Aa3 to China Southern Power

Moody's Investors Service said it assigned an Aa3 issuer rating to China Southern Power Grid Co., Ltd. (CSG).

The outlook is stable.

China Southern Power is a government-related issuer.

The issuer rating incorporates a four-notch uplift from China Southern Power’s baseline credit assessment of baa1, based on Moody's expectation of a very high level of support from the Chinese government (Aa3 stable) under Moody's joint-default analysis approach for government-related issuers.

"CSG's baseline credit assessment is underpinned by its stable business profile and strong investment-grade financial profile which provides flexibility in managing the slowing power consumption growth and the company's high capital expenditure plan," Moody's assistant vice president and analyst Ivy Poon said in a news release.

"CSG's business profile is further supported by its indispensable role in China's power sector, given its monopoly status in the power grids of its service regions supporting power security and facilitating national energy policy."

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