Cyclical businesses with limited synergy New entrant to the upstream oil business and limited operating experience Aggressive debt leverage Concentration of oil reserves and production in Kazakhstan Cash flow and profitability highly subject to volatility in crude prices Foreign oil assets are strategic to China's energy security Explicit/implicit support from its parent Medium-sized proven reserves base of 363.8 million of barrels of oil in Kazakhstan Long reserve life of 24 years Partnership with national oil company in Kazakhstan reduces operating risks there Access to equity capital market for funding The rating on CITIC Resources Holdings Ltd. (CRH) reflects its standalone credit profile and the benefits it derives from being strategically important to its parent, CITIC Group (BB+/Watch Pos/B). The rating
