On May 9, Beijing-based credit rating agency China Chengxin International Credit Rating Group (CCXI) announced that it decided to downgrade the credit rating of Xinjiang Autonomous Region-based Chinese steelmaker Bayi Iron and Steel Group (Bayi Steel) from AA+ to AA.
CCXI stated that in 2015 the overcapacity problem was extremely serious in Xinjiang Autonomous Region against the overall slack demand in the domestic finished steel market, while Bayi Steel’s steel prices and sales volumes continued to decline, causing it to incur a significant net loss in the given year.