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Moody’s and Fitch say the acquisition of Lanwei and the land expropriation work of the preliminary portion of the GNSR Expressway R&E project will not affect the company's rating

Date: 2022-11-10
View Count: 18

Yuexiu Transport is committed to maintaining the investment-grade credit ratings (Moody’s: Baa2, Fitch: BBB) from Moody's and Fitch, which issued separate press releases following the company's announcement on the acquisition of Lanwei Expressway and the land expropriation work agreement in connection with the preliminary portion of the GNSR Expressway R&E project.

Moody’s says: Assuming the two transactions are executed as planned, Moody's estimates that Yuexiu Transport's leverage, as measured by funds from operations/debt, will be in the range of 13%-15% in 2022-24, which remains within its current Baa2 rating.

Fitch says: “YXT recently finalised terms and conditions of its acquisition of Lanwei Expressway, which has been operating for more than 17 years. Simultaneously, YXT also announced finalisation of the land expropriation agreement for the preliminary works for the Guangzhou City Northern Second Ring Expressway expansion project. The broad terms and investment plans are largely in line with Fitch’s expectations.”

 

Moody’s and Fitch say the acquisition of Lanwei and the land expropriation work of the preliminary portion of the GNSR Expressway R&E project will not affect the company's ratingMoody's-Announcement-Moodys-Limited-credit-impact


Moody’s and Fitch say the acquisition of Lanwei and the land expropriation work of the preliminary portion of the GNSR Expressway R&E project will not affect the company's ratingFitch-Toll Reduction to Have Limited Impact on Chinese Toll Road Operators


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