Summary: China Hongqiao Group Ltd. - S&P Global Ratings’ Credit Research

Summary: China Hongqiao Group Ltd.

Summary: China Hongqiao Group Ltd. - S&P Global Ratings’ Credit Research
Summary: China Hongqiao Group Ltd.
Published May 28, 2013
1550 words — Published May 28, 2013
Price US$ 225.00  |  Buy this Report Now

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Abstract:

Foreign Currency: BB/Stable/-- Local Currency: BB/Stable/-- Greater China Regional Scale: cnBBB-/-- Exposure to highly cyclical and volatile aluminum market. High concentration risk. Relatively low production costs. Low transportation costs. Aggressive appetite for capacity expansion with significant capital requirements. Substantial negative discretionary cash flows. High cash balance. The stable outlook on China Hongqiao Group Ltd. reflects our expectation that the company will complete its expansion projects on time and within budget. We also anticipate that the company's profitability will be better than the industry average. We may lower the rating if China Hongqiao's cost competitiveness weakens, lowering profitability, and the management's expansion plan becomes more aggressive than we expect and is primarily debt-funded. A downgrade trigger could be the ratio of

  
Brief Excerpt:

RESEARCH Summary: China Hongqiao Group Ltd. Publication date: 28-May-2013 Primary Credit Analyst: Jian Cheng, CFA, Hong Kong (852) 2533-3576; jian.cheng@standardandpoors.com Secondary Contact: Huma Shi, Hong Kong 852-2533-3527; huma.shi@standardandpoors...

  
Report Type:

Summary

Issuer
China Hongqiao Group Ltd.
GICS
Aluminum (15104010)
Sector
Global Issuers
Country
Cayman Islands
Region
Latin America
Format:
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MLA:
S&P Global Ratings’ Credit Research. "Summary: China Hongqiao Group Ltd." May 28, 2013. Alacra Store. May 24, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Summary-China-Hongqiao-Group-Ltd-1137631>
  
APA:
S&P Global Ratings’ Credit Research. (). Summary: China Hongqiao Group Ltd. May 28, 2013. New York, NY: Alacra Store. Retrieved May 24, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Summary-China-Hongqiao-Group-Ltd-1137631>
  
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