HONG KONG (S&P Global Ratings) May 19, 2016--S&P Global Ratings said today that its rating on China Hongqiao Group Ltd. (Hongqiao: BB-/Stable/--; cnBB+/--) is not affected by the company's proposed acquisition of a 28.18% stake in Loften Environmental Technology Co. Ltd. We believe Hongqiao has sufficient internal resources to finance the up to Chinese renminbi (RMB) 900 million acquisition. As of Dec. 31, 2015, the company has RMB8.4 billion cash on its balance sheet. We expect the acquisition to have limited effect on Hongqiao's earnings, given Loften's small operating size. That said, Hongqiao is likely to increase its presence in the downstream aluminum fabrication business through Loften. On May 17, 2016, Hongqiao announced that it plans to acquire a stake
