S&P shifts Zoomlion view to stable

S&P said it revised its outlook for Zoomlion Heavy Industry Science and Technology Co. Ltd. to stable from positive and affirmed the BB- ratings on the company and the senior unsecured notes it guarantees.

“We expect Zoomlion's top line to drop by 5%-10% annually over the next 24 months. The sales downcycle for the China construction machinery sector will likely continue in 2022-2023 as a multi-year upcycle absorbed demand,” S&P said in a press release.

The agency said it forecasts Zoomlion’s could fall to RMB 55 billion-RMB 62 billion in 2022-2023 from RMB 65 billion-RMB 67 billion in 2020-2021.

“The stable outlook reflects our expectation that Zoomlion could remain among the top-three in China's construction machinery industry over the next 12-24 months,” S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.