S&P: Shandong Yuhuang notes B+

S&P said it assigned a B+ long-term corporate credit rating to Shandong Yuhuang Chemical Co. Ltd.

The agency also said it assigned a B+ long-term rating to the senior unsecured notes issued by Yuhuang's wholly owned subsidiary Rock International Investment Inc. and guaranteed by Yuhuang.

The rating is subject to a review of the final issuance documentation.

S&P also said it assigned a cnBB long-term Greater China regional scale rating to the company and its proposed notes.

The outlook is stable.

The ratings reflect the company's small scale, limited geographic and product diversification, average profitability and high financial leverage, S&P said.

The agency said it expects the company's debt leverage will stay high over the next two years because of steep capital expenditure for its U.S. gas-to-methanol project.

The ratings also are constrained by the company’s limited scale, S&P added.

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