We believe Guanghui's liquidity buffer is diminishing due to a tightening funding environment and the company's increasing reliance on short-term debt. Guanghui's good market position and continued access to the domestic credit market partly temper the risks. On Oct. 18, 2019, S&P Global Ratings revised its outlook on Guanghui to negative from stable. At the same time, we affirmed our 'B' long-term issuer credit rating on the company. We also affirmed our 'B-' long-term issue rating on the company's senior unsecured notes. The negative outlook reflects the increasing liquidity pressure at Guanghui due to rising short-term maturities and a shrinking funding market for privately owned enterprises. We revised the outlook to negative because we see increased liquidity risk for Xinjiang
