Fitch: Zhongrong Xinda, notes BB

Fitch Ratings said it assigned a BB senior unsecured rating to Zhongrong Xinda Group Co., Ltd. (BB/stable) and a BB(EXP) senior unsecured rating to its proposed dollar-denominated senior notes.

The proposed notes are issued by Zhongrong International Resources Co., Ltd., a wholly owned subsidiary of Zhongrong Xinda, and are rated at the same level as Zhongrong Xinda's senior unsecured rating as they represent the company's unconditional and irrevocable obligations.

Fitch said Zhongrong Xinda is one of China's top two coking companies, accounting for about 20% of Shandong Province's total production volume.

Its large scale, deeper processing lines and long-term procurement contracts with both downstream and upstream producers provide cost advantages against peers and make it less susceptible to fluctuations than the downstream steel industry, the agency explained.

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