...Sinochem Hong Kong's credit quality is supported by its status as a core subsidiary of Sinochem Group. We believe Sinochem Group's business and financial risks are mirrored in the credit quality of Sinochem Hong Kong because the subsidiary is integral to the Group strategically, operationally, and financially. As the Group's sole offshore platform for investments and offshore funding, Sinochem Hong Kong will likely receive necessary support from Sinochem Group to meet its debt obligations. Sinochem Group has a very high likelihood of receiving extraordinary support from the Chinese government. The group is one of the two chemical entities owned by the central government in China and continues to execute strategic functions for the government. We believe that extraordinary government support for the parent is likely to flow to Sinochem Hong Kong in case the company comes under financial distress. In our view, Sinochem Group will maintain its current focus in five business areas: energy,...
