Bengang Steel Plates credit rating maintained amidst challenges

China Chengxin International Credit Rating Co., Ltd. (CCXI) has affirmed Bengang Steel Plates Co., Ltd.'s (SZSE:000761) AA+ issuer credit rating with a stable outlook, while maintaining its "Bengang Convertible Bonds" rating at AAA due to the guarantee by Bengang Group. The rating affirmation reflects Bengang Steel’s established scale, product mix, and raw material security, despite pressures from a declining steel industry environment. The report acknowledges challenges, including widening losses in 2024, a pending major asset restructuring, and potential shifts in business focus. CCXI notes that the company's financials are impacted by market volatility and requires close attention to its future investments of the company. The AAA rating on the convertible bonds is based on the full and unconditional guarantee from Bengang Group, providing strong assurance for bond repayment. For 2024, the firm reported a loss and reported declining figures across the board. CCXI anticipates a stable outlook for the company for the next 12 to 18 months.