Moody’s lifts Citic Resources

Moody’s Investors Service said it upgraded Citic Resources Holdings Ltd. corporate family rating to Ba2 from Ba3.

“The rating upgrade reflects our expectation that Citic Resources’ improved credit metrics will be sustained over the next 12-18 months,” said Chenyi Lu, a Moody’s vice president and senior credit officer and Moody’s international lead analyst for Citic Resources.

The company’s debt leverage – as measured by adjusted debt/EBITDA – fell to 3.8x for the 12 months ended June 30, below the 5.8x recorded at the end of 2017. Positive free cashflow enabled Citic to cut its debt by around 19% to HK$5.7 billion at the end of June from HK$7 billion at the end of 2017, Moody’s said.

The outlook is stable.

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