Leading domestic market position. Better product mix than that of domestic peers, with focus on auto-related steel. Higher profitability than that of domestic peers. Negative free operating cash flows over the next two years. High capital spending plans to build new steelmaking capacity. Moderate improvement in operating performance likely over the next two years. Adequate liquidity, given strong access to domestic capital markets. The stable outlook on Bao-Trans Enterprises Ltd. reflects the outlook on the company's parent Baoshan Iron&Steel Co. Ltd. (A-/Stable/--; cnAA/--). We equalized our rating on Bao-Trans with the rating on Baoshan because we believe Bao-Trans is likely to indirectly benefit from extraordinary government support to the parent. We expect Baoshan to maintain its financial strength
