The rating on Sinochem Hong Kong (Group) Co. Ltd. (Sinochem HK) reflects our expectation that there is a high likelihood that the company will receive extraordinary timely and sufficient support, in the event of financial distress, from the government of China (AA-/Stable/A-1+; cnAAA/cnA-1+). We believe government support could flow down to Sinochem HK, which we see as an integral part of the Sinochem Group, one of the largest state-owned enterprises in China. Sinochem Corp. owns 100% of Sinochem HK, and is in turn 98% controlled by Sinochem Group. Sinochem HK is the group's key platform to conduct international trade, investments, and offshore funding. In our view, the credit profiles of Sinochem HK and Sinochem Corp. are inseparable as the companies
