Moody’s downgrades Yanzhou

Moody’s Investors Service said it downgraded the corporate family rating of Yanzhou Coal Mining Co. Ltd. to Ba3 from Ba2, along with senior unsecured debt ratings of Yancoal International Resources Development Co., Ltd. and Yancoal International Trading Co., Ltd. to Ba3 from Ba2.

The outlook was changed to stable from negative.

The downgrades reflect Yanzhou Coal’s weakened credit profile, owing to declining thermal coal prices that are unlikely to recover in the near term, Moody’s said.

A turnaround in thermal coal prices is unlikely because China’s economy will continue to be slow in 2016, the agency added.

Yanzhou Coal has reduced its operating costs through downsizing its workforce, tightening controls over raw material consumption and optimizing its operating processes, Moody’s said.

But its credit metrics have been materially affected by the continued weakness in prices, the agency said.

© 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.