S&P rates Zhongrong Xinda BB-

S&P said it assigned a BB- long-term corporate credit rating to Zhongrong Xinda Group Co. Ltd.

The outlook is stable.

The ratings reflect a view that the company will maintain its leading position in China's coking industry over the next 12 months, S&P said.

The ratings also consider Zhongrong Xinda's ability to maintain fairly stable margins through cycles as it extends the product mix through efficient coking technology and benefits from the sale of value-added by-products, the agency said.

S&P also said it expects the company's debt leverage to remain high in the coming 12 to 24 months despite moderate improvement.

Zhongrong Xinda's various product offerings in the coking value chain, its proximity to raw materials supply and end customers, its economies of scale and stable EBITDA margin support its market position, the agency said.

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