S&P ups Baosteel

Standard & Poor's said it raised its corporate credit ratings on Shanghai Baosteel Group Corp. (Baosteel Group) and Baoshan Iron & Steel Co. Ltd. (Baosteel Ltd.), collectively, Baosteel, to BBB+ from BBB.

The outlook is stable.

According to S&P, the rating action reflects Baosteel's improved product mix and operating efficiency, as well as a stronger financial profile as a result of an increase in the price of steel.

S&P said the ratings on Baosteel reflect the company's strong position in mainland China's steel industry, a steady increase in the high-value-added products, its competitive cost position, and strong financial profile. These strengths are offset by the highly competitive and cyclical nature of the steel industry, potential risks associated with the company's growth strategy, and uncertainties associated with industry consolidation in mainland China.

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