Moody's: Citic Resources view stable

Moody's Investors Service said it changed the outlook to stable from positive on the the Ba3 corporate family rating of Citic Resources Holdings Ltd. as well as the Ba3 rating on the senior unsecured notes issued by Citic Resources Finance (2007) Ltd. and guaranteed by Citic Resources.

The outlook change follows Citic Resources' profit warning announcement on July 9. The profit warning is mainly the result of weak commodity selling prices from the slowdown of global economy and a one-off expense related to $201.08 million in principal amount of bond repurchases in early 2013.

Moody's also affirmed the Ba3 corporate family rating and senior unsecured bond rating of Citic Resources.

"The outlook change to stable reflects our view that the commodities businesses of CITIC Resources, mainly coal, aluminum and manganese, will remain weak in next 6 to 12 months owing to a slowing Chinese economy and weak global demand. As a result, the company's earnings and cash flow generation will come under pressure, thus limiting the upside potential for its rating," Moody's vice president and senior credit officer Simon Wong said in a news release.

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