Sinochem Hong Kong (Group) Co. Ltd.

Solid market position across its businesses. Diverse business segments. Strong sourcing and distribution capabilities supported by stable relationships with major players. Steady profitability in line with industry peers. High leverage despite improving due to increased EBITDA. High spending on land acquisition and negative free cash flows. 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 benefit indirectly from extraordinary government support through the group. We anticipate that the group's financial strength will improve over the next two years on higher oil prices and robust performance of the property segment with funds from operations (FFO)

...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 benefit indirectly from extraordinary government support through the group. We anticipate that the group's financial strength will improve over the next two years on higher oil prices and robust performance of the property segment with funds from operations (FFO) interest coverage above 2.5x....

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