Moody's upgrades Yingde Gases

Moody's Investors Service said it upgraded the corporate family rating of Yingde Gases Group Co. Ltd. to Ba3 from B1.

Moody's also said it upgraded the senior unsecured rating on the bonds issued by Yingde Gases Investment Ltd., and guaranteed by Yingde Gases, to B1 from B2.

The outlook is stable.

The upgrades reflect an expectation that Yingde Gases' credit profile will remain strong for its rating level, supported by the company's continued revenue growth, stable profitability and cash flow generation as a result of continued prudent financial management, Moody's said.

The ratings consider the company's strong position in China's onsite gas supply market, where it holds competitive advantages, the agency said.

The ratings are constrained by the company's small revenue scale when compared with its international peers and high exposure to the cyclical domestic steel industry, Moody's said.

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