S&P rates Yihua Enterprise B

S&P said it assigned a B long-term corporate credit rating to Yihua Enterprise (Group) Co. Ltd.

The outlook is stable.

Yihua group primarily engages in the manufacture and distribution of furniture

Globally, but also expanded into health care services through several acquisitions since 2014, S&P explained.

The company also engages in real estate, capital management and hotel management businesses in China, the agency noted.

The rating reflects the company's limited market share in the competitive global furniture industry, execution risks from expansion into health care services and high debt leverage, S&P said.

Yihua group's good business diversity, vertically integrated supply chain in the furniture segment, high profit margin and large balance of cash and liquid investments temper these risks, the agency said.

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