The rating on CITIC Resources Holdings Ltd. (CRH) reflects its standalone credit profile and the benefits it derives from being strategically important to its parent, CITIC Group (BB+/Watch Pos/B). The rating on CRH is a notch lower than that on CITIC Group, as CRH is not yet a core part of the conglomerate, given its current stage of development. CRH is an investment holding company in Hong Kong with a diverse business portfolio in the natural resources and energy industries. The company is exposed to cyclical businesses, including aluminum smelting, mining, the import and export of commodities, and crude oil production. It has limited experience in upstream oil operations, as a new entrant, and a concentration of reserves and production
