Fitch rates Nine Dragons Paper BBB-

Fitch Ratings said it assigned a long-term foreign-currency issuer default rating of BBB- to Nine Dragons Paper (Holdings) Ltd.

The outlook is stable.

The rating is supported by the company's strong market position as the largest containerboard producer in China, with a market share of 20% in a highly fragmented and capital intensive industry, Fitch said. The rating also is underpinned by the company's established 13-year track record in China's containerboard industry, the agency added.

The rating is constrained by raw material price increases and supply risk, Fitch said, especially given the buildup of containerboard production capacity in China and the tight inventory situation in the United States.

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