China Steelmaker Default Risks Flag Debt Woes at State Firms
- Bloomberg model shows Xining Special default risk at 5.7%
- Firm says it's looking for support from local governments
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A Chinese government-backed steelmaker faces the highest default risk among the nation’s listed companies with bonds due in the next year, according to the Bloomberg Default Risk model, amid mounting signs of stress at state firms.
Xining Special Steel Co., whose products are used in the rail, automobile and energy industries, has a 5.7 percent probability of missing debt payments in the next 12 months, the highest among 420 listed Chinese issuers with note payments due in the coming year, according to the Bloomberg Default Risk model. That compares with an average 1.2 percent probability for all the firms. The model tracks metrics including share performance, debt and cash flow.