S&P raises Zoomlion to BB-

S&P said it upgraded its ratings for Zoomlion Heavy Industry Science and Technology Co. Ltd. and guaranteed unsecured notes to BB- from B+.

“We expect Zoomlion’s financial leverage to stay largely stable in 2021-2022, after significantly improving in the past two years. We estimate the company’s adjusted debt-to-EBITDA ratio further trended down to 2.8x-3x in 2020, from 3.5x in 2019 and 6x in 2018, on rapid profit expansion and continued free cash inflow,” S&P said in a press release.

Despite the pandemic, S&P said it estimates Zoomlion boosted its revenue 50% in 2020 on healthy construction demand, rising replacement needs and steady improvement in its market share.

The outlook is positive.

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