S&P lifts Weichai Power view to stable

S&P said it revised the outlook on Weichai Power Co. Ltd. to stable from negative.

The agency also said it affirmed the BBB long-term corporate credit rating on Weichai Power and the BBB long-term issue rating on the senior unsecured notes it guarantees.

The outlook revision reflects an expectation that the company's debt leverage will improve on the back of good business performances.

The agency said it believes the de-leveraging plan is on track for Weichai's consolidated subsidiary, KION Group AG, as indicated by the completion of two recent equity issuances.

Weichai will likely focus on business integration and lowering debt leverage over the next 12 to 18 months after its acquisition of DH Services Luxembourg Holding sarl (Dematic), S&P said.

The agency said it forecasts strong revenue growth in 2017, driven by double-digit growth in the diesel engine and auto components segments in China.

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