S&P changes Tingyi view to positive

S&P said it changed the outlook for Tingyi (Cayman Islands) Holding Corp. to positive from stable and affirmed the company’s BBB+ issuer rating.

“Our outlook revision on Tingyi reflects the improvement in the company’s credit profile and our expectation that its competitive position in instant noodles and ready-to-drink beverage will remain strong,” S&P said in a press release.

S&P said it forecasts Tingyi’s leverage (debt-to-EBITDA ratio) will remain at 0.5x or below even after considering potential acquisitions and a dividend payout ratio near the current level of 90%.

“Tingyi’s debt-to-EBITDA ratio improved to a net cash position in 2019 from a peak of 1.8x in 2015, after benefiting from EBITDA growth and robust free operating cash flow,” S&P said.

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