Small business scale. High asset-concentration risk. Ongoing parental support. High debt leverage. Liquidity support from the parent. 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 equalize our rating on Bao-Trans with the rating on Baoshan because we believe Bao-Trans will remain as a "core" subsidiary over the next two years. The stable outlook on Baoshan also reflects our expectation that the company will maintain its financial strength over the next 12 months despite challenging conditions in China's steel industry. Baoshan's leading market position, with a focus on high-end products and improving operating efficiency, underpins its credit profile. We expect capital expenditure and capacity expansion to
