Banner
Filtraglass
Falorni Tech Glass Melting Technology

Shanghai Yaohua Pilkington Glass: agency cuts credit rating

The issuer credit rating of Shanghai Yaohua Pilkington Glass Co. Ltd. (YPG) has been downgraded from “A+” to “BBB” by Xinhua Far East China Ratings, based on the deterioration of the company“s operat…

The issuer credit rating of Shanghai Yaohua Pilkington Glass Co. Ltd. (YPG) has been downgraded from “A+” to “BBB” by Xinhua Far East China Ratings, based on the deterioration of the company“s operating and financial position since 2005. In a statement, the rating agency said the downgrade also reflected the inability of YPG“s management to deal with market downturns and the firm“s loss of competitive advantage in the Chinese glass industry. Float glass capacity in China has undergone rapid expansion in the past three years, and more production lines are likely to become operational in 2006 and 2007, bringing greater competition and overcapacity to the sector, Xinhua Far East added. Government macroeconomic policies to stop the economy overheating have brought about a downturn in domestic demand and a fall in prices. Rising raw materials costs have put pressure on the company“s profitability, the ratings agency said. Xinhua Far East said the outlook for YPG remains stable.

Sign up for free to the glassOnline.com daily newsletter

Subscribe now to our daily newsletter for full coverage of everything you need to know about the world glass industry!

We don't send spam! Read our Privacy Policy for more information.

Share this article
Related news