S&P rates ChemChina BBB

S&P said it assigned a BBB long-term corporate credit rating to China National Chemical Corp. (ChemChina), along with a cnA long-term Greater China regional scale rating.

The outlook is stable.

The ratings reflect ChemChina's strong business diversity, good market position for some specialty products and significant vertical integration in its focused products, S&P said.

Frequent oversupply, intense competition and the resulting weak profitability of its oil refining and commodity chemicals temper these strengths, the agency said.

The group also has high leverage because of its aggressive capital expenditure and past acquisitions, S&P said.

The company has a stand-alone credit profile of BB+ with a moderately high likelihood that Chinese government will provide sufficient and timely extraordinary support if needed, the agency said.

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