S&P downgrades Yanzhou

Standard & Poor's said it revised the outlook on Yanzhou Coal Mining Co. Ltd. to negative from stable.

The agency also said it affirmed the company's BB+ long-term corporate credit rating and the BB+ long-term rating on the company's guaranteed senior unsecured notes.

S&P also said it lowered the Greater China regional scale ratings on the company and the notes to cnBBB from cnBBB+.

The outlook revision reflects an expectation that the company's financial position will weaken over the next 12 to 18 months, said Jian Cheng, an S&P analyst.

"Yanzhou is likely to use debt to fund its high capital spending during this time, pushing the company's leverage beyond our expectation," Cheng said in a press release.

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