Shanghai Tyre long-term credit rating downgraded

HONG KONG (Aug. 13)—Xihua Far East China Credit Ratings has downgraded Shanghai Tyre & Rubber Co. Ltd.'s long-term credit rating to C from B-. The ratings firm cited overdue debt, accounting for nearly 4.1 percent of Shanghai Tyre's gross debt by mid-2003, and unqualified opinions from the company's international auditors the past two years. In addition, Shanghai Tyre's auditors note the firm's $158 million loss in 2002 and its liabilities exceeding assets by $103.7 million last year indicate the company's status as a going concern depends on its future performance and support from banks and its controlling shareholder, Huayi Group.