S&P rates China Tianrui Group Cement 'B+'

S&P rates China Tianrui Group Cement 'B+'
Published: 19 April 2012


Ratings agency Standard & Poor’s (S&P) has assigned its 'B+' long-term corporate credit rating and 'cnBB' Greater China credit scale rating to China Tianrui Group Cement Co. Ltd. (Tianrui group). The outlook is stable. A the same time, Standard & Poor's assigned its 'B' issue rating and 'cnBB-' Greater China credit scale rating to the group's proposed issue of senior unsecured notes. The rating on the notes is subject to our review of the final documentation for the notes issuance. Tianrui group is a Cayman Islands corporation that indirectly owns 100% of Tianrui Cement, a China-based cement producer.

S&P stated: “The rating on Tianrui group reflects its short track record, the heavy reliance of its capital structure on short-term debt, and aggressive growth plans. The group operates in a competitive, cyclical, and capital-intensive industry, which we believe is heading into a weak cycle. The group's operating scale, reasonable geographic diversification, and relatively efficient operations due to vertical integration partly moderate the weaknesses.”