S&P boosts Haidilao International

S&P said it raised its ratings on Haidilao International Holding Ltd. and its 2.15% notes due 2026 to BBB from BBB-.

Haidilao’s table turnover bounced back faster than S&P expected. “We believe revenue and EBITDA of the hot pot operator in 2023 will materially exceed pre-pandemic levels,” the agency said in a press release.

S&P said it now forecasts table turnover to reach 3.7x in 2023, and improve to 4x in 2024, compared with its previous estimate of 3.5x in 2023 and 2024. “While we expect average spending per guest to trend lower than last year, we still expect 35.5% growth in revenue in 2023 to Chinese renminbi (RMB) 42 billion, which is 8.1% higher than the previous peak in 2021.”

The outlook is stable.

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