Moody's views China Minmetals negatively

Moody's Investors Service has changed the outlooks on all ratings of China Minmetals Corp. and its key subsidiaries, China Metallurgical Group Corp. (CMGC) and Metallurgical Corp. of China Ltd. (MCC), to stable from positive. The agency also affirmed their Baa1 ratings.

"The change in outlook to stable from positive reflects our expectation that China Minmetals' credit profile will moderately weaken over the next 12-18 months, driven by lower metals and mining earnings amid slowing economic growth as reflected in the rating agency's recent action to change China's sovereign A1 rating outlook to negative. The rating action also reflects the company's modestly rising debts to support growth in its construction businesses," said Chenyi Lu, a Moody's vice president and senior credit officer, in a press release.

The outlook on CMGC and MCC reflects the outlook of the parent, the agency said.

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