China-based Shandong Gold has large operational scale, relatively low cash cost, long mine life, and a diversified presence in China. The gold producer's high financial leverage, major exposure to a single commodity, and limited global diversification moderate these strengths. We see a high likelihood for Shandong Gold to receive timely and sufficient extraordinary support from the Shandong government. We are assigning our 'BBB-' long-term issuer credit rating to Shandong Gold. The stable outlook reflects our view that Shandong Gold will maintain its current leading market position in China and take measures to reduce its high financial leverage in the next 24 months. On Oct. 4, 2018, S&P Global Ratings assigned its 'BBB-' long-term issuer credit rating to Shandong Gold Group
