Fitch: Yunnan Energy bonds BBB

Fitch Ratings said it published long-term foreign-currency issuer default rating and a senior unsecured rating of BBB to Yunnan Provincial Energy Investment Group Co., Ltd.

The outlook is stable.

Fitch also said it assigned an expected BBB rating to the proposed dollar-denominated senior unsecured bonds to be issued by Yunnan Energy Investment Finance Co. Ltd.

Yunnan Energy Investment will enter into a keepwell deed and deed of equity interest purchase and investment undertaking to provide credit support to the proposed bonds, the agency said.

The ratings are credit-linked, but not equalized to the internal credit assessment of Yunnan province, Fitch said.

The linkages between the company and the province are evident in the province’s majority effective ownership of the company and oversight of its management and strategies, the agency said.

The company is of highly strategic importance to the province’s investments and it receives policy support, Fitch added.

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