Summary: CITIC Group Jan 07
- ID: 1870004
- January 2007
- Standard & Poors
The rating on CITIC Group (CITIC) reflects its close government links; adequate liquidity, supported by good access to the domestic debt market; and increasing financial flexibility as it rebuilds its balance sheet at a time when equity markets in China and Hong Kong are buoyant. These positive factors are counterbalanced by the group's weak, albeit improving, financial profile, which is characterized by low capitalization, soft but improving asset quality, and mediocre profitability. An increase in CITIC's double leverage ratio is also a concern, and is mainly attributable to ongoing financial restructuring exercises at its banking arms. This ratio is likely to be further pressured by the group's growing ambitions in nonfinancial businesses, as signaled by a recently announced acquisition of...
Companies mentioned in this report are:
- CITIC Group Corp.
- CITIC Pacific Ltd.
- Banco Bilbao Vizcaya Argentaria S.A.
- CITIC International Financial Holdings Ltd. (Unsolicited Ratings)
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