2007'02.01.Thu
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: +852-3196-3983, +8621-6113-5999 or +852-9486-4364 Email: joy.tsang@xinhuafinance.com US David Leeney, Taylor Rafferty (IR/PR Contact in US) Tel: +1-212-889-4350 Email: david.Leeney@taylor-rafferty.com SOURCE Xinhua Far East China Ratings
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