S&P upgrades Zoomlion

S&P said it upgraded Zoomlion Heavy Industry Science and Technology Co. Ltd. and its guaranteed senior unsecured notes to B+ from B.

“We expect Zoomlion to further deleverage in 2020 on profit expansion and positive free cash flow. Zoomlion significantly reduced its debt-to-EBITDA ratio to 3.5x in 2019, from 6x in 2018, as robust demand and further margin expansion resulted in strong EBITDA growth and solid free cash inflow,” S&P said in a press release.

The agency said it estimates Zoomlion will keep its adjusted EBITDA margin stable at 13.5%-14.5% in 2020, compared with 14.2% in 2019.

The outlook is positive.

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