Fitch gives China Resources Gas Group notes final BBB+

Fitch Ratings said it assigned a final rating of BBB+ to the $750 million of 4½% notes due 2022 issued by China Resources Gas Group Ltd. (BBB+/stable).

The ratings reflect the profitability and favorable growth prospects of China Resources Gas' core gas distribution business in China, the agency said. They also incorporate a one-notch uplift for potential support from the company's immediate parent, China Resources Holdings Ltd., and the ultimate majority owner, the China sovereign (A+/stable), through the state-owned Assets Supervision and Administration Commission.

Fitch said a negative rating action on the ratings of China Resources Gas could result from a material deterioration in the regulatory environment, increasing failure to pass through cost increases to preserve profitability and FFO fixed coverage falling below 7 times and/or net leverage increasing to above 3.5 times on a sustained basis.

© 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.