Moody's assigns A3 to Baoshan

Moody's Investors Service said it assigned an A3 issuer rating with a stable outlook to Baoshan Iron & Steel Co. Ltd. (BISC).

BISC is 79.7% owned by Baosteel Group Corp. (A3 stable).

BISC's A3 rating combines its solid standalone credit profile and a two-notch uplift for expected support from its parent, Baosteel Group, which is in turn a 100% central state-owned enterprise.

The two-notch rating uplift takes into consideration BISC's status as a flagship subsidiary of Baosteel Group and its strategic importance within the group.

"BISC's standalone credit profile is supported by its large scale in integrated steel production and strong market shares in most of its steel products. BISC shows a unique level of competitiveness against its domestic peers, and has shown its ability to defend and sustain an operating performance - which is well above the industry average - over the business cycle," Moody's analyst Jiming Zou said in a news release.

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