1. LINE

      Text:AAAPrint
      Economy

      Baosteel's ratings pressured by merger with Wuhan Iron and Steel: Moody's

      1
      2016-09-25 09:22Xinhua Editor: Feng Shuang ECNS App Download

      The announced merger of Baosteel Group and Wuhan Iron and Steel Group is credit negative and will put pressure on Baosteel's ratings, rating agency Moody's said in its initial assessment of the move.

      On Tuesday, the State-owned Assets Supervision and Administration Commission of the State Council of China approved the joint restructuring of the two steelmakers to form the largest steel company in China by capacity.

      The initial assessment by Moody's is that the merger will strengthen the merged entity's market position as the largest steel producer by capacity in China, rationalize production capacity, management costs and capital expenditures, as well as reduce price cutting from competition in the domestic market.

      However, the benefits will take time to be realized, the agency noted.

      On the other hand, Wuhan Iron and Steel Group's weaker operations and financial position will weaken Baosteel's financial capacity, and the debt leverage will remain high after the merger.

      The details of the merger have yet to be finalized. Once detailed information becomes available, Moody's said it will assess the impact on the ratings within the Baosteel group.

      Last year, crude steel output of Baosteel and Wuhan Iron and Steel was 34.94 million tonnes and 25.78 million tonnes, respectively. After the merger, the output of the newly merged company will exceed that of Hebei Province's HeSteel Group to rank first in China and become the world's second largest steelmaker, after ArcelorMittal.

      The move is the latest effort by the Chinese government to cut steel overcapacity. China is the world's largest producer and consumer of steel. The industry has long been plagued by overcapacity, which has become a major drag on China's growth in recent years.

      Annual steel production in China is 1.2 billion tonnes, but the country aims to reduce steel production by 45 million tonnes in 2016.

        

      Related news

      MorePhoto

      Most popular in 24h

      MoreTop news

      MoreVideo

      News
      Politics
      Business
      Society
      Culture
      Military
      Sci-tech
      Entertainment
      Sports
      Odd
      Features
      Biz
      Economy
      Travel
      Travel News
      Travel Types
      Events
      Food
      Hotel
      Bar & Club
      Architecture
      Gallery
      Photo
      CNS Photo
      Video
      Video
      Learning Chinese
      Learn About China
      Social Chinese
      Business Chinese
      Buzz Words
      Bilingual
      Resources
      ECNS Wire
      Special Coverage
      Infographics
      Voices
      LINE
      Back to top Links | About Us | Jobs | Contact Us | Privacy Policy
      Copyright ©1999-2018 Chinanews.com. All rights reserved.
      Reproduction in whole or in part without permission is prohibited.
      主站蜘蛛池模板: 亚洲成AV人片在WWW色猫咪| 亚洲综合精品网站| 亚洲黄色网站视频| 免费国产成人午夜在线观看| 亚洲无码日韩精品第一页| 亚洲AV无码AV日韩AV网站| 好爽…又高潮了免费毛片| 国产人成亚洲第一网站在线播放| **aaaaa毛片免费| 亚洲精品自拍视频| 国内精自视频品线六区免费| 亚洲码一区二区三区| 免费成人福利视频| 亚洲va久久久久| 国产免费无遮挡精品视频| 九一在线完整视频免费观看| 亚洲人成影院在线观看| a级成人免费毛片完整版| 国产亚洲一区二区精品| 97av免费视频| 亚洲AV无码乱码在线观看代蜜桃 | 亚洲av无码专区青青草原| 在线jyzzjyzz免费视频| MM1313亚洲国产精品| 亚洲性久久久影院| 成人性生交大片免费看中文| 亚洲精品国产成人| 午夜a级成人免费毛片| 无码日韩人妻AV一区免费l| 亚洲一区二区三区在线观看精品中文 | 亚洲国产婷婷综合在线精品| a级片免费在线观看| 久久久久久久亚洲Av无码| 美女视频黄a视频全免费网站色窝| 中文字幕亚洲情99在线| 美女在线视频观看影院免费天天看| 亚洲va在线va天堂va四虎| 成年女人毛片免费观看97| 4hu四虎免费影院www| 亚洲成AV人影片在线观看| 亚洲日本香蕉视频观看视频|