2007'02.01.Thu
Xinhua Far East Assigns AA Issuer Credit Rating to Shanghai Port Container Co., Ltd.

April 12, 2006

HONG KONG, April 12 /Xinhua-PRNewswire/ -- Xinhua Far East China Ratings today assigned Shanghai Port Container Co., Ltd. ("the Company" or "SPC", SH A 600018) with an AA domestic currency issuer credit rating. The Company's rating outlook is stable. The rating reflects SPC's advantageous location in Shanghai, a hub of China's buoyant international trade, and in the prosperous Yangtze River Delta -- the main engine of China's economy, which represented more than 20% of China's GDP in 2005. SPC's position has been bolstered by rapid development at Shanghai port, which is currently the third largest port in the world in terms of container throughput; it is also the largest in mainland China in terms of both container and cargo throughput. The government's decision to build an international shipping center in Shanghai and the construction of Yangshan Port will also benefit the Company in the long run. Xinhua Far East believes that the acquisitions of stakes in Waigaoqiao Phase V and Yangshan Phase I will enable the Company to maintain vibrant growth in its core business, giving it an expansion of 50% in its container handling capacity. The Company's strategy of taking an equity position in branch ports along the Yangtze River has strengthened the hub position of the Shanghai port by attracting stable container sources. In addition, the Company has efficient container handling operations, ample cash reserves, sound cash flow and profit generating capacity, flexible fund raising channels, and relative conservative financial leverage. There are concerns, however, related to the cyclical nature of the container shipping industry, a possible slowdown of China's economy, the huge capital expenditure required for the construction of the new port facilities, and the inadequate berth water depth of Shanghai port. Additionally, Xinhua Far East notes that the Company may not receive the same level of support from its parent company, Shanghai International Port (Group) Co., Ltd., as it enjoyed previously as a result of stringent corporate governance requirements implemented for SIPG's planned IPO in Hong Kong. Shanghai Port Container Co., Ltd. ("SPC") is a leading company specializing in container terminals handling and value-added services at Shanghai port. The Company's activities mainly include port handling, road transportation, agency and other port-related business. In 2005, the Company reported turnover and EBIT of RMB4,776 million and RMB1,925 million respectively. Turnover generated from its port handling business reached RMB2,824 million, accounting for 59% of total turnover in 2005. The Company mainly operates in the Shanghai area, with turnover from this region accounting for 99.18% of total turnover in 2005. SPC's parent company is Shanghai International Port (Group) Co., Ltd. ("SIPG"), which held a 70.18% stake in the Company at the end of 2005. SIPG is the biggest port company with the highest container loading and transportation capacity in mainland China. SIPG's predecessor was the Shanghai Port Authority, and the state-owned Shanghai Assets Supervision and Administration Commission controlled 50% of the stake of SIPG at the end of 2005. Shanghai Port Container Co., Ltd. is also a large cap company in the Xinhua/FTSE China A50 Index. As of April 11, 2006, its total market cap was RMB20 billion with investable market cap of RMB6 billion. For the rating report summary, please visit http://www.xinhuafinance.com/creditrating . Note to Editors: About FTSE/Xinhua China A50 Index The FTSE/Xinhua 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 . 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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