Xinhua Far East Assigns A+ Issuer Credit Rating to China Shipping Development Co., Ltd.

Xinhua Far East Assigns A+ Issuer Credit Rating to China Shipping Development Co., Ltd.

March 27, 2006

    HONG KONG, March 27 /Xinhua-PRNewswire/ -- Xinhua Far
East China Ratings today assigned China Shipping
Development Co., Ltd. ("the Company" or
"CSD," SH A 600026; HK 1138) with an A+ domestic
currency issuer credit rating.  The Company's rating
outlook is stable.  

    The rating reflects CSD's strong market position in its
core domestic coastal oil shipping and domestic coastal coal
shipping businesses.  In 2004, the Company held more than
half the market share and 23% market share in the two
respective markets, largely as a result of its superior
operating capacity and the entrance barriers faced by
foreign carriers. 

    The "domestic oil transported by domestic
companies" policy pursued by China's government
reflects the government's intention to secure energy
security and protects Chinese players from potential
competition.  The huge energy demands of China's growing
domestic economy also have put the Company in a good
position. 

    The rating also takes into account the Company's ample
cash reserves, stable debt maturity structure, conservative
financial leverage, effective cost controlling and sound
cash flow generating capacity.

    However, the cyclical nature of the shipping industry
and the downside movement of freight rates in CSD's main
businesses could put the Company's performance under
greater pressure, although these concerns are partly
allayed by the fact the Company delivered sound performance
during the shipping industry's slump in 2001.

    Xinhua Far East's rating action takes into
consideration the adverse effect of a possible slowdown in
China's economy, as well as diffusion effects from oil
pipeline transportation projects, ongoing high fuel costs,
projected huge capital expenditure for its new fleet, and
the Company's ongoing restructuring of its dry cargo
business with its parent company.

    China Shipping Development Co., Ltd. held more than
half the market share in the domestic coastal oil shipping
market and 23% market share in the domestic coastal coal
shipping market in 2004.  The Company is also involved in
the business of oil ocean transportation and other dry bulk
cargo shipment, including ores and fertilizers.  As of
December 31, 2004, the Company's operated total oil tanker
fleet of 2.69 million DWT and dry cargo fleet of 2.38
million DWT. In 2004, the Company reported turnover and
EBIT of RMB6,136 million and RMB2,145 million
respectively.

    China Shipping Development Co., Ltd. is a large cap
company in the Xinhua/FTSE China A50 Index, and, as of
March 24, 2006, its total market cap was RMB11.8 billion
with investable market cap of RMB2.4 billion.

    For the rating report summary, please visit
http://www.xinhuafinance.com/creditrating .

    Note to Editors:

    About Xinhua FTSE China A50 Index

    The Xinhua FTSE China A50 Index is a real-time tradable
index comprising the largest 50 A Share companies by full
market capitalization.  Designed to meet the needs of
QFIIs, it can be used as a basis for both on-exchange and
OTC derivative products, mutual funds and ETFs.  For daily
data and further information, see http://www.xinhuaftse.com
.  For daily data and further information, see
http://www.xinhuaftse.com . 

    About Xinhua Far East China Ratings

    Xinhua Far East China Ratings (Xinhua Far East) is a
pioneering venture in China that aims to rank credit risks
among corporations in China.  It is a strategic alliance
between Xinhua Finance (TSE Mothers: 9399), and Shanghai
Far East Credit Rating Co., Ltd. Shanghai Far East became a
Xinhua Finance partner company in 2003 and the first China
member of The Association of Credit Rating Agencies in Asia
in December 2003. 

    Capitalizing on the synergy between Xinhua Finance and
Shanghai Far East, Xinhua Far East's rating methodology and
process blend unique local market knowledge with
international rating standards.  Xinhua Far East is
committed to provide investors with independent, objective,
timely and forward-looking credit opinions on Chinese
companies.  It aims to help investors differentiate the
credit risks among the corporations in China, thereby,
cultivating their awareness and promoting information
disclosures and transparency in China market.  For more
information, see http://www.xfn.com/creditrating .

    About Xinhua Finance Limited

    Xinhua Finance Limited is China's unchallenged leader
in financial information and media, and is listed on the
Mothers board of the Tokyo Stock Exchange (symbol: 9399)
(OTC ADRs: XHFNY).  Bridging China's financial markets and
the world, Xinhua Finance serves financial institutions,
corporations and re-distributors through four focused and
complementary service lines: Indices, Ratings, Financial
News and Investor Relations.  Founded in November 1999, the
Company is headquartered in Shanghai with 21 news bureaus
and offices in 18 locations across Asia, Australia, North
America and Europe.  For more information, please visit
http://www.xinhuafinance.com . 
 
    About Shanghai Far East Credit Rating Co., Ltd

    Shanghai Far East Credit Rating Co., Ltd. is the first
and leading professional credit rating company with
comprehensive business coverage in China.  It is an
independent agency established by the Shanghai Academy of
Social Sciences with the mission to develop internationally
accepted standards for capital market in China.  The company
is a pioneer in conducting bond-rating business in China. 
For years, it has been authorized by the Shanghai branch of
the PBOC to undertake loan certificate credit rating.

    Since establishment, it has rated over 1,000 corporate
long-term bonds and commercial papers, based on the
principles of objectivity, fairness and independence.  The
company has also maintained over 50% market share in the
loan certificate-rating sector in Shanghai for three
consecutive years.  With its strong local presence and
knowledge, it provides investors with unique and the most
insightful credit opinion. For more information, see
http://www.fareast-cr.com .

    For more information, please contact: 

    Hong Kong
     Joy Tsang, 
     Corporate & Investor Communications Director, 
     Xinhua Finance
     Tel:   [phone] or
[phone]   
     Email: [e-mail]

    US
     David Leeney, 
     Taylor Rafferty (IR/PR Contact in US)
     Tel:   [phone]
     Email: [e-mail]

SOURCE  Xinhua Far East China Ratings