The termination of ENN Natural Gas' (SHA:600803) buyout proposal of ENN Energy Holdings (HKG:2688) eases any possible financial burden, S&P Global Ratings said in a recent release.

The cancellation will remove notable new debt obligations or pressure on internal cash reserves, S&P said.

The subsidiary will also remain independent with the withdrawal of the buyout, the rating agency said.

The plan to acquire the remaining shares of the company's 34.26%-held subsidiary could have led to cash needs of about HK$18.4 billion on top of newly issued shares, Fitch said.

The amount represents a marked outflow relative to the company's HK$25 billion in adjusted debt.

The company's alternate plan to raise shareholding in the subsidiary will not yield significant financial impact given the 2% limit on yearly shareholding increases, according to Fitch.

The subsidiary will retain its governance and operational autonomy from its parent, with narrower risks due to cash flow commingling and higher upstreaming, Fitch said.