S&P lifts Citic Resources view to positive

S&P said it revised the outlook on Citic Resources Holdings Ltd. to positive from stable.

The agency also said it affirmed the company's BB- long-term issuer credit rating.

S&P said it expects Citic's financial leverage to remain much lower in the next 12 months than during the industry trough of 2015 and 2016, mainly on a recovery in oil prices.

The agency also said it expects the company's non-oil businesses to continue to contribute stable cash flows.

The company's financial performance will be more resilient even if oil prices soften in 2019 and 2020 on slowing demand and increasing supply from the United States, S&P added.

This is because the company is expected to maintain stringent cost control measures as it did in the past few years to confront volatile oil prices, the agency said.

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