S&P lifts Cofco Hong Kong view to positive

S&P said it revised the outlook on Cofco (Hong Kong) Ltd. to positive from stable.

The agency also said it affirmed the BBB+ long-term issuer credit rating on Cofco Hong Kong and BBB+ long-term issue rating on the dollar-denominated senior unsecured notes issued by Prosperous Ray Ltd., a wholly owned financing subsidiary of Cofco Hong Kong.

Cofco Hong Kong guarantees the notes.

Cofco Hong Kong is a 100%-owned subsidiary of Cofco Corp., which is 100% owned by the State-owned Assets Supervision and Administration Commission (Sasac), S&P said, and plays important strategic roles to ensure the stability of food supply and food safety in China.

The positive outlook reflects a belief that Cofco is making progress with its strategy to improve operating efficiency by rationalizing its organizational structure and through mixed-ownership reform.

Cofco's profitability and debt serviceability could continue to improve over the next 12- to 24-months, S&P said.

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