Fitch downgraded Yuntou Group to "BBB-" with a negative outlook.

Zhongxin Jingwei Client 65438+1October 6 (Xue Intern Liu Lu) On the 5th, Fitch released a report saying that it downgraded the default rating of Yunnan Investment Holding Group Co., Ltd. (hereinafter referred to as Yuntou Group) from "BBB" to "BBB-", with a negative outlook. Fitch also downgraded the bond guaranteed by Yuntou Group, with a coupon rate of 6.25% and a maturity of US$ 600 million in 2022 from "BBB" to "BBB-", which was issued by Bihai Co., Ltd., a British Virgin Islands overseas special purpose company wholly owned by Yuntou Group.

Fitch believes that the local government's support for Yuntou Group is "medium". According to its report, from 20 15 to 20 19, Yuntou Group received the capital injection of about 1 10 billion yuan from the Yunnan provincial government, of which about 90% was used as the railway development fund of Yunnan Province by the company's important subsidiaries. Compared with the revenue scale of Yuntou Group, the company receives little subsidy, and the capital injection provided by the government for its project investment is not enough to cover its annual capital expenditure.

The above-mentioned rating companies also pointed out that Yuntou Group is an important investment holding platform in Yunnan Province and manages diversified investment portfolios, including investments in medical care, science and technology, real estate development, manufacturing and transportation. However, most of Yuntou Group's business faces competition from private enterprises in the province and other government-related enterprises. The company's business is mostly carried out at the subsidiary level, and the holding company only serves as a financing platform for some subsidiaries. If Yuntou Group defaults, it will only adversely affect the services of subsidiaries with weak financing capacity, so Fitch rated the company as "medium" in social and economic importance. (Zhongxin Jingwei APP)

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