Summary: Baosteel Group Corp. Feb 09
- ID: 2031712
- February 2009
- Standard & Poors
The rating on Shanghai-based steel maker Baosteel Group Corp. reflects Baosteel's strong business profile, which is largely derived from its 74% ownership of Baoshan Iron & Steel Co. Ltd. (A-/Stable/--), China's leading steel maker. The rating also factors in Baosteel's prudent growth strategy and financial profile, which is reflected in the company's well-capitalized balance sheet and strong liquidity position. Baosteel's track record in expansion via both greenfield development and acquisitions also supports the rating. The rating on Baosteel is constrained by the operating challenges associated with its core steel-making assets (see report on Baoshan) and risks associated with its acquisition-based business growth strategy. The rating on Baosteel is closely linked with that on Baoshan because of the inseparable ties between...
Companies mentioned in this report are: Baosteel Group Corp.,Baoshan Iron & Steel Co. Ltd.
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