Sinochem Hong Kong (Group) Co. Ltd.

Solid market position and good long-term demand prospects for core businesses. Strong sourcing and distribution capabilities supported by stable relationships with major players. Good business diversification and benefits from increasing vertical integration. Stable profitability in line with industry peers. Business transition and execution risks. High capital requirements. Negative free cash flows and high leverage. Adequate liquidity. The stable outlook on Sinochem Hong Kong (Group) Co. Ltd. (Sinochem Hong Kong) for the next 24 months reflects our expectation that the company will remain a core subsidiary of Sinochem Group and that it will benefit indirectly from extraordinary government support through Sinochem Group. We expect the group will cut costs and capital spending to mitigate weak trading conditions for its commodities related

...Outlook: Stable The stable outlook on Sinochem Hong Kong (Group) Co. Ltd. (Sinochem Hong Kong) for the next 24 months reflects our expectation that the company will remain a core subsidiary of Sinochem Group and that it will benefit indirectly from extraordinary government support through Sinochem Group. We expect the group will cut costs and capital spending to mitigate weak trading conditions for its commodities related businesses such that its credit metrics will improve moderately over the next two years with funds from operations (FFO) interest coverage of at least 2.5x....

Full Report