Fitch rates Delong notes B

Fitch Ratings said it assigned a B long-term foreign-currency issuer default rating to Delong Holdings Ltd., along with an expected rating of B and an expected recovery rating of RR4 to the proposed senior unsecured dollar notes to be issued by Delong.

The rating is contingent upon receipt of final documents.

The outlook is stable.

The company's small scale of operations, with total production capacity of 2.6 million tons per annum, is the main constraining factor on its rating, Fitch said.

This relatively smaller scale does not give it the scope to have multiple product lines nor distinguish itself in a field of over 40 other steel companies of similar size in Hebei province alone, the agency said.

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