Fitch affirms, drops Nine Dragons Paper's long-term foreign currency issuer default rating at BB-

Kendall Sinclair

NEW YORK , October 7, 2011 (press release) – Fitch Rating has affirmed Nine Dragons Paper Holdings Limited's (Nine Dragons) Long-Term Foreign Currency Issuer Default Rating at 'BB-' with Stable Outlook. The rating has been simultaneously withdrawn.

The affirmation reflects the continued strong growth of Nine Dragons' operating cash flows underpinned by the favourable environment for industrial paper in China. While the company continues to generate negative free cash flows as a result of a large capex program, it also continues to secure sufficient onshore and offshore funding.

The rating has been withdrawn as it is no longer considered by Fitch to be relevant to the agency's coverage. Nine Dragons completed the early redemption of all of its outstanding 7.875% senior notes due 2013 notes on 16 August 2011. Fitch will no longer provide ratings or analytical coverage of this issuer.

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