Strong parent support Diversified business portfolio Exposure to cyclical industries with limited synergies Adequate liquidity Cash flow and profit margin highly exposed to volatile commodity prices High leverage The stable outlook reflects our expectation that CITIC Resources Holdings Ltd.'s (CRH) financial performance will remain satisfactory over the next 24 months. The company's liquidity should be adequate to meet its current capital expenditure and debt repayments, in our view. CRH's liquidity position also provides a buffer should the operating performance weaken amid economic uncertainty. Nevertheless, the stable outlook doesn't factor in potential acquisitions. The rating could come under pressure if a higher-than-expected drop in commodity prices drags EBITDA interest coverage to below 2x or, in an unlikely scenario, parental support is
