The rating on Hong Kong-based CITIC Resources Holdings Ltd. (CRH) reflects the company's exposure to cyclical businesses with limited synergy, its vulnerability to volatility in commodity prices, and its highly leveraged capital structure. These weaknesses are partly offset by the support CRH derives from being part of the CITIC Group (BBB-/Stable/A-3), and the relatively long-life reserves at its oil field in Kazakhstan. CRH is exposed to cyclical businesses with limited synergy. It is an investment holding company with a diverse business portfolio in aluminum smelting, coal, manganese, 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 in Kazakhstan. These oil business
