Guanghui operates in China's highly competitive and fragmented auto retail industry, and is exposed to highly volatile energy and cyclical property segments. We also expect Guanghui's financial leverage to remain high due to the company's aggressive debt-funded expansion appetite and high capital investment requirement. Guanghui's satisfactory market position as the largest auto retailer in China and its extensive nationwide network and diversified product offering temper these weaknesses. We are assigning our 'B' long-term corporate credit rating and our 'cnBB-' long-term Greater China regional scale rating to Guanghui. The stable outlook on Guanghui reflects our expectation that the company will continue to shift its focus to higher-margin after-sales services while maintaining its satisfactory market position in China's auto retailing market over
