Hongqiao will continue growing its aluminum capacity and cost efficiency programs over the next 12 months. We expect the China-based aluminum producer to sustain its low cost position as it ramps up production, which would support its profitability in a subdued commodity pricing cycle. However, the company's high appetite for capacity growth, which is primarily debt-funded, could challenge its ability to maintain its current cash flow leverage because the industry in China is oversupplied. We are affirming our 'BB-' long-term corporate credit rating and our 'cnBB+' Greater China regional scale rating on Hongqiao. We are also affirming our 'BB-' long-term issue rating and 'cnBB+' long-term Greater China regional scale rating on the company's senior unsecured notes. The stable outlook reflects
