Fitch rates Yingde notes BB

Fitch Ratings said it assigned a final rating of BB to Yingde Gases Group Co. Ltd.’s $250 million 7¼% senior unsecured notes due 2020.

The notes are issued by Yingde Gases Investment Ltd. and are unconditionally and irrevocably guaranteed by Yingde.

This final rating follows the receipt of documents conforming to information already received and is in line with the expected rating assigned Aug. 21, Fitch said.

Yingde’s on-site gas supply business, which accounted for 88% of revenue in 2013, generates stable cash flow similar to that seen in utility companies, the agency said.

Yingde enjoys more stable profitability relative to peers due to the high contribution from its on-site business, Fitch said.

Yingde’s competitors, in comparison, tend to have more unpredictable earnings profiles as they have higher exposure to the merchant-gas sales segment, the agency said.

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