S&P rates Contemporary Amperex, bonds BBB+

S&P said it assigned BBB+ ratings to Contemporary Amperex Technology Co. Ltd. and its planned guaranteed dollar-denominated bonds.

“The rating on CATL reflects our view of the company’s leading market position in the competitive lithium-ion motive battery industry amid an accelerating vehicle electrification trend. It also reflects CATL’s solid net cash position, which provides sufficient financial buffer for its rising capex,” S&P said in a press release.

S&P forecasts the company’s EBITDA margin will be mostly stable at 22%-24% over the next two years, compared with 23.7% in the first half of 2020 and 22.7% in 2019.

The outlook is stable, which the agency said reflects the view CATL will protect its competitive position, higher-than-peer profitability and very low leverage.

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