Fitch cuts Yunnan Energy

Fitch Ratings said it downgraded Yunnan Provincial Energy Investment Group Co., Ltd.'s long-term foreign-currency issuer default rating and senior unsecured rating to BBB- from BBB. The agency also lowered subsidiary Yunnan Energy Investment (HK) Co. Ltd.’s rating to BBB- from BBB.

Fitch simultaneously trimmed the ratings on Yunnan Provincial's dollar-denominated notes to BBB- from BBB and the rating on its senior perpetual securities to BB+ from BBB-. The bonds and securities were issued by Yunnan Energy Investment Overseas Finance Co. Ltd., a wholly owned subsidiary of Yunnan Energy. Yunnan Provincial and Yunnan Energy guarantee the notes.

The downgrade follows Fitch’s reassessment of Yunnan Provincial's support record to weak from moderate under its government-related entities rating criteria, the agency said.

The outlook is negative.

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