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 (foreign currency BBB+/Stable/A-2). CRH's stand-alone credit profile reflects its exposure to cyclical businesses with limited synergy, its susceptibility to volatility in commodity prices, and its 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 adequate liquidity. The rise in crude oil prices since the second half of 2009 has been beneficial to CRH. But production from the Karazhanbas oilfield has been stable at about 35.5 thousand barrels of
