Moody's upgrades CR Gas

Moody's Investors Service said it upgraded the issuer rating and senior unsecured debt rating of China Resources Gas Group Ltd. (CR Gas) to A3 from Baa1 and its senior unsecured medium-term notes program rating to provisional A3 from provisional Baa1.

The outlook was changed to stable from positive.

The upgrades reflect the company's strengthened standalone credit profile, supported by its improved operating performance and credit metrics, Moody's said.

The company is expected to maintain a strong financial profile over the next 12 to 18 months, driven by its ability to generate free cash flows and its manageable level of capital spending, the agency said.

The upgrades also consider the company's established track record of organic growth in gas sales volumes from its well-diversified, quality city-gas distribution projects in China, Moody's said.

The agency said it expects it to achieve at least 10% annual growth in such sales volumes in 2017 and 2018.

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