Fitch rates Zhongrong Xinda BB

Fitch Ratings said it assigned a long-term issuer default rating of BB to Zhongrong Xinda Group Co., Ltd.

The outlook is stable.

Zhongrong Xinda is one of China's largest coke processors and Shandong's largest logistics company, Fitch said.

The company also expanded into the liquefied natural gas (LNG) re-fueling station business in 2013, the agency said, and acquired a Peruvian iron ore mine in 2016.

Zhongrong Xinda's ratings are supported by the company's strong market position in the coking and logistics industries in China, firm capital discipline and strong financial flexibility, Fitch said.

The ratings also are underpinned by substantial liquid financial assets, the agency said.

Its ratings are constrained by high leverage and regional concentration, Fitch added.

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