The rating on Hong Kong-based CITIC Resources Holdings Ltd. (CRH) reflects the company's weak stand-alone credit profile, which we assess at 'B', and the support it derives from being a strategically important subsidiary of CITIC Group (BBB/Positive/A-2). The company's stand-alone profile reflects its exposure to cyclical businesses with limited synergy, its susceptibility to volatility in commodity prices, and its very high leverage. These weaknesses are partly offset by the relatively large (compared with the company's size) reserves at its oil field in Kazakhstan and its liquidity position, which we view as adequate. 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
