SINGAPORE: China Jinjiang Environment Holding Company Limited, a leading Waste-to-Energy operator in China, announced that S&P Global Ratings has upgraded the Company’s outlook from negative to positive.
This comes on the back of the successful acquisition on 21 August 2019 of 29.79% of Jinjiang Environment’s shares by a wholly-owned subsidiary of Zhejiang Provincial Energy Group Co., Ltd. to become the Company’s largest controlling shareholder.
According to S&P, the positive outlook on Jinjiang Environment reflects S&P’s view that the Company could be eligible for a rating uplift based on expectations of support from Zheneng Group.
S&P has affirmed Jinjiang Environment’s ‘BB-’ long-term issuer credit rating and the ‘B+’ long-term issue rating on the Company’s senior unsecured notes
In S&P’s view, Zheneng Group’s strong credit profile could potentially improve Jinjiang Environment’s access to funding and lower its financing costs. As one of the largest state-owned energy enterprises in Zhejiang province, Zheneng Group’s strong creditworthiness is poised to enhance the Company’s credit strength and improve funding stability.
Backed by its 20 years of strong track record coupled with its leading industry position and global Waste-to-Energy network, Jinjiang Environment is an ideal partner for Zheneng Group’s entry into the environmental protection industry.
Through this mutually beneficial partnership, Zheneng Group is able to leverage on Jinjiang Environment’s strengths and network to diversify its power generation portfolio in the Waste-to-Energy space.
Zhang Chao, Executive Director and Chief Executive Officer of Jinjiang Environment, said: “The positive outlook by S&P Global Ratings is a strong vote of confidence and recognition of Zheneng Group’s entry into Jinjiang Environment as the largest controlling shareholder. We remain committed in maintaining financial prudence in our business expansion while leveraging on our new controlling shareholder’s financial resources and credit strength to reinforce our leading position in the Waste-to-Energy industry.”
Edited by Nayyar Iqbal