Moody's upgrades Tingyi

Moody's Investors Service said it upgraded Tingyi (Cayman Islands) Holding Corp.'s (Tingyi) issuer rating and senior unsecured rating to A3 from Baa1. Concurrently, Moody's revised the outlook to stable from positive.

"The rating upgrade reflects Tingyi's consistently prudent financial policy and its resilient business model, which support a track record of free cash flow generation, low leverage and a solid net cash position," said Ying Wang, a Moody's vice president and senior analyst, in a press release.

Tingyi's consistently free cash flow generation and financial prudence enabled it to lower its leverage, as measured by the adjusted debt/EBITDA ratio, to 1.4x as of the end of 2020 from 2x as of the end of 2017. Moody's said it sees Tingyi’s leverage remaining low at around 1.5x over the next one to two years, a level appropriate for its A3 ratings.

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