Fitch downgrades Shandong Snton

Fitch Ratings said it downgraded Shandong Snton Group Co., Ltd.'s long-term issuer default rating to BB from BB+.

Fitch also said it downgraded the company's senior unsecured rating to BB from BB+.

The outlook is stable.

The downgrades reflect the rise in Shandong Snton's leverage in 2017 and the lack of clarity about whether this can be reversed in the medium term, the agency said.

The company's leverage exceeded forecasts, primarily because of capital expenditures and working capital outflows, Fitch said.

Shandong Snton is among China's top-three steel tire cord manufacturers with significant economies of scale, product leadership and solid business relationships, the agency said.

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