Fitch stabilizes Yunan Energy outlook

Fitch Ratings said it changed its outlook for Yunnan Provincial Energy Investment Group Co., Ltd. (YEIG) and its subsidiary Yunnan Energy Investment (HK) Co. Ltd. to stable from negative and affirmed the BBB- ratings.

The agency also affirmed YEIG's senior unsecured rating and the ratings on its senior unsecured U.S. dollar notes, which it guarantees, at BBB-, while the rating on YEIG's $150 million senior perpetual securities was affirmed at BB+. YEIG's indirectly wholly owned subsidiary, Yunnan Energy Investment Overseas Finance Co. Ltd. issued the notes and securities.

“The outlook revision reflects Fitch's lower internal assessment of Yunnan province's creditworthiness, while concurrently raising its assessment of the social-political implications of a default by YEIG to 'strong', from 'moderate', under the agency's government-related entities (GRE) rating criteria,” the agency said in a press release.

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