...- In our view, Xinjiang Guanghui Industry Investment (Group) Co. Ltd.'s (Guanghui) lack of access to long-term financing will heighten its refinancing risk. We expect the company to refinance most of its bullet debt due in 2021 with short-term bank facilities. - The recovery in Guanghui's auto retail and energy businesses could provide some support to the group's credit profile, but the significant cash leakage may make it less effective for the listed subsidiaries to upstream dividends when necessary. - The state-owned enterprise background of Guanghui's potential second-largest shareholder, Shenergy (Group) Co. Ltd., may help strengthen the company's banking relationships and lift sentiment in debt capital markets. Whether Shenergy will provide further support for Guanghui to materially improve its liquidity at the parent level remains uncertain. - We are therefore lowering our long-term issuer credit rating on Guanghui to 'B-' from 'B'. At the same time, we are lowering the long-term...
