Fitch rates Yancoal noted BB

Fitch Ratings said it affirmed Yanzhou Coal Mining Co. Ltd.'s (Yancoal) long-term issuer default rating at BB+.

The outlook is stable.

The rating of the dual tranche $1 billion notes issued by Yancoal International Resources Development Co., Ltd., guaranteed by Yancoal, also is affirmed at BB+.

Fitch also said it assigned an expected rating of BB to Yancoal International Trading Co., Ltd.'s proposed dollar-denominated senior perpetual capital securities, which are guaranteed by its 100%-owner Yancoal.

The proposed securities are rated one notch below Yancoal's BB+ issuer default rating based on the agency's hybrids criteria to take into account their coupon-deferral feature, the agency said.

Yancoal plans to use proceeds from the proposed bond to refinance debt maturing in the near term and previously planned capital expenditure in Australia, Fitch said.

The proposed perpetual bond provides additional liquidity to Yancoal to weather the more challenging business conditions and reduces refinancing pressure on the company for the next 12 months, the agency added.

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