Kirin takeover a plus for Lion Nathan

Lion Nathan has had its long- and short-term issuer default ratings assigned by Fitch upgraded to 'A-/F1' from 'BBB+/F2'. The ratings have been removed from Rating Watch Positive with a stable outlook assigned. The move follows the completion of both the acquisition by Kirin Holdings and Fitch's review of the ratings it assigns to Kirin. Kirin long-term IDR was lowered to 'A' with a stable outlook, from 'A+'.

The 'A-' rating assigned to Lion Nathan recognises its position as a wholly-owned subsidiary and its strategic importance to Kirin. However, the rating was not equalised with that of Kirin because of a lack of financial and operational integration, at this time.

S&P announced on Friday that it had withdrawn the 'B-/Negative' long-term credit rating assigned to The Griffin Coal Mining Company Pty Ltd and the 'B-' rating assigned to its US$475 million US s144A bond issue. The withdrawal was at the request of the company (that is, Griffin chose not to pay S&P's fees).