Moody's ups Yanzhou

Moody's Investors Service said it upgraded Yanzhou Coal Mining Co. Ltd.'s corporate family rating to Ba1 from Ba2. Moody's also upgraded to Ba1 from Ba2 the backed senior unsecured debt rating on the bond issued by Yancoal International Resources Development Co., Ltd. and guaranteed by Yanzhou Coal. The outlook is stable.

“The upgrade primarily reflects Yanzhou Coal's improved operating performance and financial profile, and our expectation that the company will sustain these improvements. The upgrade also reflects the improved credit profile of its parent, Yankuang Group Corp. Ltd. (Ba1, Stable),” said the agency in a press release.

Yanzhou Coal's Ba1 rating continues to incorporate a two-notch uplift based on parental support from Yankuang. Moody's considers the credit profiles of Yanzhou Coal and Yankuang as closely linked, given that Yanzhou Coal is Yankuang's flagship subsidiary, accounting for 64% and 74% of its total assets and revenue at the end of September.

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