(The following statement was released by the rating agency)
Oct 11 - Overview
-- We expect China-based conglomerate Baosteel to demonstrate lackluster operating performances and to make increasing investments in 2012-2013, leading to weaker credit protection measures.
-- We are lowering our long-term corporate credit and issue ratings on Baosteel to 'A-' from 'A'. At the same time, we are lowering our long-term Greater China regional scale ratings on Baosteel and its debt to 'cnAA' from 'cnAA+'.
-- The stable outlook reflects our expectation that Baosteel can maintain its financial strength over the next 12-24 months despite a downturn in the steel industry, based on its good market position and focus on high-end products.
On Oct. 11, 2012, Standard & Poor's Ratings Services lowered its long-term corporate credit rating on China-based steel-focused conglomerate Baosteel Group Corp. to 'A-' from 'A'. The outlook is stable. At the same time, we lowered the issue ratings on its outstanding debt to 'A-' from 'A'. We also lowered our long-term Greater China regional scale ratings on the company and its debt to 'cnAA' from 'cnAA+'.