Fitch rates Jiangyin Chengxing notes B

Fitch Ratings said it assigned a long-term issuer default rating of B to Jiangyin Chengxing Industrial Group Co., Ltd.

The outlook is stable.

Fitch also said it assigned a B senior unsecured rating with recovery rating of RR4 to Jiangyin Chengxing, along with an expected B rating with recovery rating of RR4 to its proposed dollar-denominated senior notes.

The proposed notes are issued by Red Cloud Capital Ltd., a wholly owned subsidiary of Jiangyin Chengxing, and are rated at the same level as Jiangyin Chengxing's senior unsecured rating as they represent the company's unconditional and irrevocable obligations, Fitch said.

The ratings are supported by the company's vertically integrated phosphorous business, established market position in the chemical industry, diverse portfolio of customers and stable margins, the agency said.

The ratings are constrained by the company's limited financial flexibility and high financial leverage, Fitch said.

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