Moody's rates Beijing New Building A3

Moody's Investors Service said it assigned a first-time A3 issuer rating to Beijing New Building Materials plc.

The outlook is stable.

The rating reflects the company's long operating track record of more than 40 years and dominant position as an early entrant in the China gypsum board market with favorable demand dynamics, Moody's explained.

The rating also considers its strong profitability, low debt leverage and prudent financial policy as evidenced throughout cycles, the agency added.

The company's gypsum board sales volume increased by 11.6% compound annual growth rate during 2012 through 2017, Moody's said, and the healthy state of demand in China will continue to be driven by the construction, remodeling and repair of buildings and industry rationalization.

Moody's said it expects the company's revenue to expand steadily on a high single-digit percent per year in the next three years, which in line with the overall industry's growth.

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