S&P rates Wens BBB+

S&P said it assigned a BBB+ issuer rating to Wens Foodstuff Group Co. Ltd.

“The rating on Wens reflects the company's leading market positions in hog and poultry production in China, good cost control and low leverage. These strengths are tempered by the company's exposure to an industry that is fragmented, cyclical and prone to oversupply. Its faster expansion than before is another risk over the next several years,” S&P said in a press release.

S&P also assigned a stable outlook. “The stable outlook reflects our expectation that Wens will achieve double-digit growth, maintain an EBITDA margin of above 19%, and generate adequate operating cash flow to maintain a low debt level, and consequently, keep leverage below 1.5x,” the agency said.

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