Moody’s ups China Travel Service

Moody's Investors Service said it upgraded to A3 from Baa1 the issuer rating of China Travel Service (Holdings) Hong Kong Ltd. and the backed senior unsecured bond rating of its subsidiary, King Power Capital Ltd.

The outlook is stable.

“The upgrade of CTS reflects its close links with its parent, China National Travel Service Group Corp. Ltd. (CNTS), and our expectation that CNTS' credit quality will continue to improve over the next two years, resulting in a strengthened ability to provide support,” Chenyi Lu, Moody's vice president and senior credit officer, said in a news release.

“The upgrade also reflects our expectation that CTS' financial leverage will improve over the next two years, underpinned by lower debt levels and higher earnings.”

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