(The following statement was released by the rating agency)
Sept 25 - Standard & Poor’s Ratings Services said today that it had affirmed its ‘B+’ long-term corporate credit rating on China-based glass maker China Glass Holdings Ltd. We also affirmed the ‘cnBB-’ Greater China regional scale rating on the company. We then withdrew all the ratings at the company’s request. The rating outlook at the time of the withdrawal was negative. China Glass repaid its outstanding U.S.-dollar-denominated bonds in July 2012.
The affirmed rating prior to the withdrawal reflected our opinion that China Glass has limited product diversification and volatile margins. The rating also reflected the price volatility, fragmentation, and oversupply in the flat glass industry in China. The company’s experienced management team, diverse customer base, and capability to migrate to coated glass and low-emissivity glass products supported the rating. The negative outlook prior to the rating withdrawal reflected our view of China Glass’ deteriorating profitability and weak cash flows.
-- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008