S&P lifts Yanzhou Coal view to stable

S&P said it revised the outlook on Yanzhou Coal Mining Co. Ltd. to stable from negative.

The agency also said it affirmed the company's BB- long-term corporate credit rating, along with BB- ratings on the two outstanding senior unsecured notes and B+ rating on the outstanding senior unsecured perpetual securities that the company guarantees.

S&P also said it raised the Greater China regional scale ratings on Yanzhou Coal and its two senior unsecured notes to cnBB+ from cnBB, along with the Greater China regional scale rating on the perpetual securities to cnBB from cnBB- .

The outlook revision was due to reported better-than-expected performance for 2016 due to a significant recovery in coal prices, the agency said.

As a result, S&P said it expects the company's financial performance to improve on stabilized thermal coal prices, increasing sales volume and largely flat production costs in the next two years.

The company's debt-to-EBITDA ratio is expected to improve and stay at less than 6x during 2017 through 2018, the agency said.

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