S&P upgrades Yanzhou Coal

S&P said it raised the long-term issuer credit rating on Yanzhou Coal Mining Co. Ltd. to BB from BB-.

The agency also said it raised the long-term issue rating on the $550 million senior unsecured notes that the company guarantees to BB from BB-.

S&P also said it raised the rating on its guaranteed $500 million senior unsecured perpetual securities to BB- from B+.

The outlook is stable.

The agency also said it upgraded Yanzhou Coal after the company reported financial results for 2017 that beat expectations mainly due to higher-than-expected coal prices, the agency added.

The company's financial metrics are expected to remain largely steady in the next two to three years on increasing sales volume and declining capital expenditure due to its reduced appetite for expansion, S&P said.

China's coal prices recovered significantly in 2017 amid tightening supply resulting from state-guided efforts to reduce industry capacity, 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.