Xinhua Far East China Ratings today downgraded the issuer credit rating of Shanghai Yaohua Pilkington Glass Co Ltd ("YPG" or "the Company") (SH A 600819;SH B 900918) from A+ to BBB.
The company's rating outlook remains stable.
The downgrade was prompted by Shanghai Yaohua Pilkington Glass Co Ltd's dramatically deteriorating operating and financial profiles since 2005 in a difficult operating environment characterized by overcapacity, macro-cooling policies and climbing costs. Meanwhile, the downgrade also reflects the management's inability to deal with market downturns and the company's significant loss of its original competitive advantage during the expansionary
development of China's glass industry. As a result, YPG's credit profile is no longer commensurate with its A+ rating.
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