Moody’s ups Yanzhou view to stable

Moody's Investors Service said it changed the outlook on Yanzhou Coal Mining Co. Ltd.’s B2 corporate family rating, and on the B2 senior unsecured rating on the bonds issued by its subsidiary, Yancoal International Resources Development Co., Ltd. and guaranteed by Yanzhou Coal, to stable from negative.

At the same time, the agency affirmed both ratings.

"The change in Yanzhou Coal's ratings outlook to stable reflects our expectation that average thermal coal prices in China and Australia over the next 12 to 18 months will be higher than in 2016, which will in turn support the company's EBITDA recovery and debt deleveraging," Moody's vice president and senior analyst Gerwin Ho said in a news release.

"While Yanzhou Coal's short-term debt levels are still material relative to its total debt, we expect the company will be able to refinance its short-term debt, as its parent is a key state-owned enterprise in Shandong Province."

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