S&P rates Fufeng, notes BB

Standard & Poor's said it assigned a BB long-term corporate credit rating to Fufeng Group Ltd., along with a BB rating to the proposed issue of senior notes due 2016.

The outlook is stable.

The proceeds will be used to fund expansion in northeast China and for general corporate purposes.

The ratings reflect the company's proposed debt-funded expansion, limited geographic and product diversity and a potential decline in margins, the agency said.

Fufeng's strong domestic market position in monosodium glutamate, its good operating efficiency and established network temper these weaknesses, S&P said.

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