OREANDA-NEWS. October 18, 2011. About the released credit rating report by Taiwan Ratings Corp.,it maintained 'twAA+' long-term and revised the outlook on long-term corporate credit rating from stable to negative on China Steel because of the weaker demand in steel industry during the rating period, reported the press centre of CSC.

Due to debt crisis in America and Europe in the first half year and low demand and price in product, our net operating profit rate compared with the same period last year decreased. In spite of the situation described above, we believe that the steel industry and market are turning better.

To keep up with our long-term development plan, it is a must that we shouldincur significant capital expenditures. Such capital expenditures include investment in our major raw materials and investment in Vietnam, India and other Asian countries. To raise our self-sufficient rate of raw materials, the former investment is really important for our company. The latter investment in Southeast Asia countries is necessary to expand our marketing channel and to raise our market share in export market. All the capital expenditures mentioned above are required strategies to our long-term development, despite the fact that it will raise the debt ratio in capital structure.

Although we got a negative outlook from stable on long-term corprate credit rating of 'twAA+', our credit rating is still better than main steel companies in Asia.