Moody's rates Guotai Junan Holdings' US$3b medium-term note

The company received a long-term and short-term rating of (P)Baa1 and (P)P-2.

Moody’s Investors Service has assigned a long-term and short-term ratings of (P)Baa1 and (P)P-2 to Guotai Junan Holdings Limited's $23.3b (US$3b) medium-term note (MTN) program.

The agency also assigned a Baa1 backed senior unsecured rating to the Guotai Junan Holdings’ US dollar-denominated senior unsecured notes.

Further, the company was given a stable outlook in line with the GTJA Securities’ outlook.

Moody’s noted upgrades to the MTN program rating will be hinged on the ratings of the GTJA Securities because the notes issued under the program are “unconditionally and irrevocably guaranteed by GTJA Securities.”

The agency said GTJA Securities will unlikely be upgraded based on its assessment on the company’s standalone credit profiles.

The standalone assessment could be improved it GTJA Securities improves its funding and liquidity by reducing investments in illiquid securities, ensures smooth operation and risk control, as well as maintain good profitability.

“GTJA Securities' ratings could be downgraded if Moody's assesses that the government's willingness and ability to support the entity have weakened,” the report read.