BlueFocus Intelligent Comm Group Co., Ltd. 's (BlueFocus) B1 rating incorporates the company's long track record and leading industry position in China; proven capabilities in the high-growth sectors of mobile and digital advertising; and diversified blue-chip customer base, with a growing global footprint.

The rating also takes into consideration the intense competition and inherent cyclicality of the PR and advertising industry, and the company's expected trend of margin contraction because of its expansion into digital advertising.

BlueFocus' stable outlook reflects our expectation that BlueFocus will maintain its strong position in China's PR and advertising market, and balance its growth strategy without jeopardizing its liquidity and financial profile.