China Chengxin Asia-Pacific Maintains Shandong Honghe Holding Group Co., Ltd. Long-term Credit Rating at BBBg-, Outlook Stable

NightAirdropper · 2026-03-26T03:19:15+00:00

China Chengxin Asia-Pacific maintains a long-term credit rating of BBBg- for Shandong Honghe Holdings Group with a stable outlook. The rating is based on the company's large position in the coal industry, stable demand, and high profitability, but also faces challenges due to earnings being affected by market conditions, increased debt, and liquidity issues. The parent company is likely to provide support.

NightAirdropper

2026-03-26 03:19:15

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Securities News: On March 25, China Integrity (Asia-Pacific) Credit Rating Co., Ltd. (“China Integrity Asia-Pacific”) maintained the long-term credit rating of Shandong Honghe Holding Group Co., Ltd. (“Shandong Honghe” or “the Company”) at BBB-, with a stable outlook.

Shandong Honghe’s long-term credit rating of BBB- is based on factors including that the company (1) is a major large-scale coal company in Zoucheng City; (2) has stable and diversified coal mining and trading operations with steady demand; (3) maintains relatively high profitability; (4) benefits from asset transfers from shareholders. However, the rating also considers factors such as the company’s (1) earnings being susceptible to energy prices and industry policy adjustments; (2) small scale of coal mining and reserves; (3) increased debt burden and moderate debt repayment capacity; (4) average liquidity position.

The rating also reflects the high likelihood of strong support from its parent company, Zoucheng City Urban Investment Holding Group Co., Ltd. (“Zoucheng Urban Investment”), which is the largest infrastructure investment and financing company in the area, mainly engaged in infrastructure construction in Zoucheng City. The support from the parent company is considered very probable due to the company’s (1) unique position as the only coal subsidiary under Zoucheng Urban Investment; (2) being a major contributor to Zoucheng Urban Investment’s revenue and profit; (3) cross-default provisions related to Zoucheng Urban Investment’s offshore bond issuance.

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