S&P revises Yuexiu Transport view to stable

S&P said it revised Yuexiu Transport Infrastructure Ltd.’s outlook to stable from negative and affirmed its BBB- issuer rating.

“We revised the outlook because YXT's credit metrics will likely recover, driven by a strong rebound in toll revenue after the lifting of the toll moratorium and the company's disciplined approach to debt management. We forecast its ratio of funds from operations (FFO) to debt will improve to above 13% in 2021 and 2022, from an estimated 7%-10% in 2020,” S&P said in a press release.

The agency said it projects YXT’s revenue to increase by 30%–35% in 2021 from 2020. “This reflects the first full-year toll performance of the company's expanded toll road portfolio and growing traffic in its central China toll roads,” S&P said.

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