Sinochem Hong Kong (Group) Co. Ltd.

Overview Key strengths Key risks Integral to Sinochem Holdings Corp. Ltd. as a direct extension of the group; also benefits from parent support for refinancing. High leverage from debt-funded spending on property development. Sinochem Holdings has a very high likelihood of receiving extraordinary support from Chinese government, if needed. Sinochem Holdings has very high leverage after taking over hefty debt from China National Chemical Corp. Ltd. Sinochem Holdings has global leading market positions in agriculture, animal nutrition, and silicone material businesses. Sinochem Holdings' earnings susceptible to fluctuations in energy and chemical-product prices. Sinochem Hong Kong's creditworthiness is driven by that of its parent, in our view. The company is a direct extension of Sinochem Holdings. It is fully integrated with

...Sinochem Hong Kong (Group) Co. Ltd. will benefit from support from Sinochem Holdings and indirectly from the Chinese government. Sinochem Hong Kong's creditworthiness is driven by that of its parent, in our view. The company is a direct extension of Sinochem Holdings. It is fully integrated with the group strategically, operationally, and financially. Sinochem Hong Kong is Sinochem Holdings' key offshore investment and financing platform. The company is distinct from the other financing and investment vehicles of Sinochem Holdings' subsidiaries, in that it directly acts on behalf of the ultimate parent for high-level, strategic initiatives....

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