OREANDA-NEWS. MIE Holdings Corporation's (MIE, B-/Rating Watch Negative) announcement that it has completed the disposal of the entire issued share capital of Asia Gas & Energy Ltd (AGE) helps the company's near-term liquidity profile, which is under pressure due to low oil prices and significant debt maturities in 2018 and 2019, Fitch Ratings says.

MIE received USD208.6m from the disposal of AGE on 20 July 2016. MIE held a 51% stake in Sino Gas & Energy Limited (SGE), which develops unconventional gas assets in China, through AGE. A second asset sale of a 60% equity interest in MIE's subsidiary holding Emir-Oil, which is responsible for the company's operations in Kazakhstan, has yet to be completed.

As much as these sale proceeds help MIE's near-term liquidity, how the company choses to use the proceeds is also important for its longer-term credit profile, especially considering the company's lumpy debt maturities of USD200m and USD500m due in 2018 and 2019, respectively. The sale of its interests in SGE and Emir-Oil will reduce MIE's asset base and hydro-carbon production substantially, unless the company uses the proceeds to improve its asset base and operating profile to support payments for the upcoming debt maturities.

MIE still expects to realise about USD175m from the sale of the company's 60% share in Emir-Oil. This disposal has already received approval from MIE's shareholders on 20 June 2016. The purchaser of Emir-Oil, Reach Energy Berhad, has already received approval for the acquisition from Kazakhstan's Committee on Regulation of Natural Monopolies and Protection of Competition of the Ministry of National Economy; however, the purchaser has yet to secure the approval from its shareholders and the Securities Commission Malaysia.

Fitch will resolve the Rating Watch Negative on MIE's ratings once these transactions are completed and the use of proceeds is confirmed. This would also entail a review of the Recovery Ratings on its senior unsecured debt, based on the asset and liability profile of the company after factoring in these developments.