The internationally renowned rating agency Moody’s has recently issued a report to upgrade China Resources Gas's credit rating from Baa1 to A3, the highest among the domestic industry, with a stable outlook. China Resources Gas (CR Gas) is the only company in domestic gas industry to receive this honor so far.
Moody's believes that CR Gas has been focusing on the development of urban gas distribution and has taken a leading position in the industry. As of June 2017, the Company has invested in more than 230 urban gas projects in 22 provinces, most of which are provincial capital cities and second- and third-tier cities with good economic development, serving nearly 29 million civil residents and 220,000 industrial and commercial users. Its excellent urban gas projects and end-user structure have given rise to rapid business development and sustained stable performance. As China encourages clean energy use such as the natural gas and the company keeps improving its operational and management capabilities, the Company is expected to see sound growth over the next two to three years. While expanding its business scale, CR Gas has also maintained a good performance in financial terms including a stable cash flow.
The rating upgrade is a second time for CR Gas in six years since Moody's first gave it a Baa1 rating in December 2011, which reflects the wide market recognition of the company's development strategy of focusing on the main business and its excellent financial performance.