TEXT-S&P affirms and then drops rating on China Tianrui

Tue Jan 8, 2013 6:37am EST

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(The following statement was released by the rating agency)

Jan 08 - Standard & Poor's Ratings Services said today that it had affirmed its 'B+' long-term corporate credit rating and 'cnBB' long-term Greater China regional scale rating on cement producer China Tianrui Group Cement Co. Ltd. (Tianrui). We then withdrew the ratings at the company's request. The rating outlook at the time of the withdrawal was stable. At the same time, we withdrew the 'B' and 'cnBB-' issue ratings on Tianrui's proposed senior unsecured notes.

The affirmed rating prior to the withdrawal reflected our opinion that Tianrui is likely to maintain its operating margin at more than 20% and improve its financial position in the next 12 months. In our opinion, Tianrui's corporate governance has yet to be tested due to the company's short track record. At the time of withdrawal, the stable outlook on Tianrui reflected our expectation that the company will maintain adequate liquidity and strengthen its market positions in Henan and Liaoning provinces.

RELATED CRITERIA AND RESEARCH

-- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008

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