Fitch: ENN Energy unchanged

Fitch Ratings said ENN Energy Holdings Ltd.’s $200 million acquisition of its parent company’s Canada and U.S. gas refueling-station operations is negative for the company’s credit profile because of the higher business risks of these operations, initial cash outflow and cash losses of the acquired business.

The acquisition, however, does not impact ENN’s rating of BBB with stable outlook at this time, Fitch said, but it materially reduces ENN’s headroom under its ratings in the near term.

The ratings stem from the strengths of the company’s China city-gas operations, the agency said.

Fitch said it expects the China city-gas operations to account for more than 50% of its EBITDA in the medium term.

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