Fitch boosts Yuexiu Transport

Fitch Ratings said it boosted Yuexiu Transport Infrastructure Ltd.'s (YXT) long-term foreign- and local-currency issuer default ratings and senior unsecured rating to BBB from BBB-.

Concurrently, the agency raised the rating on Famous Kind International Ltd.'s $1 billion medium-term note program to BBB from BBB-. Famous Kind is wholly owned by YXT, which guarantees the notes sold under the program.

“The upgrade reflects substantial improvement in YXT's net leverage to 5.2x in 2021 from 7.1x in 2020 and our expectation the ratio will stay below our BBB negative trigger of 4.5x in the medium term. YXT's toll traffic continued to demonstrate resilience after its swift recovery following the toll-fee exemption period in 2020. YXT's 2021 daily toll traffic was about 10% above 2019's pre-pandemic level, despite occasional targeted lockdowns and movement control measures imposed during the year,” Fitch said in a press release.

The outlook is stable.

© 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.