China Railway Construction’s win on railway project in Zambia is credit positive

china railway

Moody’s Investors Service says that China Railway Construction Corp Ltd’s (CRCC, A3 stable) winning of a contract for a railway construction project in Zambia (B3 negative) is credit positive and supports its A3 issuer rating.

The rating outlook remains stable.

Earlier On 3 November 2016, CRCC announced that it had won the contract for the Chiapata via Petauke to Serenje Railway Line — also known as the Zambia East-line Railway — with the Ministry of Transport and Communications in Zambia.

The contract size is about RMB15.1 billion, accounting for about 0.8% of CRCC’s total order backlog at end-June 2016 or 2.5% of its revenue for the 12 months ended 30 June 2016. The project will have a construction period of four years.

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