Moody’s reviews Yanzhou Coal for upgrade

Moody’s Investors Service said it placed Yanzhou Coal Mining Co. Ltd.'s B2 corporate family rating, as well as the B2 backed senior unsecured rating on the bonds guaranteed by Yanzhou Coal and issued by its subsidiary, Yancoal International Resources Development Co., Ltd., under review for upgrade.

The agency said the action follows the announcement on Aug. 1 by Yancoal Australia, a 78% subsidiary of Yanzhou Coal, of its plan to raise approximately $2.5 billion in equity to fund its acquisition of Australia-based, Coal & Allied Industries Ltd.

"The review for upgrade of Yanzhou Coal's ratings reflects our expectation that Yancoal Australia's financial profile and operations will improve, upon the successful completion of the Coal & Allied acquisition," Gerwin Ho, Moody's vice president, senior analyst and international lead analyst for Yanzhou Coal, said in a news release.

“The successful acquisition of these mines by Yancoal Australia through the equity issuance would increase Yancoal Australia's size and turn its operations profitable from the current loss position,” the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.