S&P upgrades Yingde Gases

S&P said it raised the long-term corporate credit rating on Yingde Gases Group Co. Ltd. to CCC+ from CCC-.

The agency also said it raised the rating on the outstanding senior unsecured notes that Yingde guarantees to CCC from CC.

The outlook is positive.

The upgrades reflect an increased visibility that Yingde will pay its outstanding debt, S&P explained.

This follows the company's successful and timely repayment of its offshore bank loan in June and domestic notes in July, the agency said,

S&P said it believes Yingde's controlling shareholder, PAG Asia Capital, will provide liquidity support when needed.

The agency also said the imminent liquidity risk for Yingde has reduced following the company's repayment of the notes and bank loan.

But, the company's liquidity remains weak given it still has large debt maturities in the next 12 months, S&P noted.

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