Fitch: ENN Energy bond BBB

Fitch Ratings said it assigned an expected rating of BBB to ENN Energy Holdings Ltd.'s proposed dollar-denominated bond issue.

The bonds are rated at the same level as ENN's long-term foreign-currency issuer default rating because they represent direct, unconditional, unsecured and unsubordinated obligations of the company, Fitch said.

The proceeds will be used to refinance the company's debts and for general corporate purposes, including working capital, the agency said.

ENN's ratings are underpinned by its strong business profile and credit metrics, Fitch said, as well as the government's generally favorable policies toward the city-gas distribution sector in China.

Risks may arise from regulatory reform in the industry, the agency noted.

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