S&P: China Metallurgical on positive watch

Standard & Poor’s said it placed the BBB- long-term corporate credit rating and cnA- long-term Greater China regional scale rating on China Metallurgical Group Corp. on CreditWatch with positive implications.

The agency also said it placed the BBB- rating and cnA- long-term Greater China regional scale rating on the outstanding $500 million senior unsecured notes issued by MCC Holding (Hong Kong) Corp. Ltd. and guaranteed by China Metallurgical on CreditWatch with positive implications.

The positive watch reflects the increased likelihood of extraordinary government support to the company following its recent merger with China Minmetals Corp., S&P said.

Following the transaction, the agency said it expects China Metallurgical to be a fully consolidated subsidiary under Minmetals.

But, S&P also said it needs to further clarify with government regulators regarding its level of support to the combined entity and to China Metallurgical.

The combined entity will control various mining resources in China and overseas, the agency said, and will have the capability to conduct metallurgical plant and other general infrastructure construction, both of which are important to China’s continued development.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.