Moody's gives Yanzhou bond Ba1

Moody's Investors Service said it assigned a provisional Ba1 rating to the senior unsecured perpetual bond to be issued by Yancoal International Trading Co., Ltd. and guaranteed by Yanzhou Coal Mining Co., Ltd.

The rating is also on review for downgrade, reflecting the review for downgrade of Yanzhou Coal's Ba1 corporate family rating and senior unsecured debt rating of Yancoal International Resources Development Co. Ltd.

Proceeds will be used for repayment of indebtedness, capital expenditure, working capital as well as for general corporate purposes.

"The perpetual bond issuance will provide additional funding for Yanzhou Coal to manage its business in an industry down-cycle," Moody's vice president and senior credit officer/manager Simon Wong said in a news release.

The provisional Ba1 rating assigned to the proposed perpetual bond reflects the Ba1 rating of Yanzhou Coal as well as the senior unsecured nature of this obligation, the agency said.

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