Fitch assigns Contemporary Amperex BBB+

Fitch Ratings said it assigned Contemporary Amperex Technology Co., Ltd. a long-term issuer default rating and senior unsecured rating of BBB+. The outlook is stable.

“CATL’s rating is supported by its strong competitive position, as well as its robust FFO margins, liquidity and net cash position. The company is one of the global market leaders in lithium-ion battery manufacturing and is expanding in China and internationally in response to rapidly rising global demand for its products,” Fitch said in a press release.

“Fitch expects the capacity expansion to hinder CATL’s FCF generation, but the company has a strong net cash position and enhanced its liquidity via a CNY 19.7 billion equity placement completed in July 2020. Fitch expects CATL to maintain its net cash position despite heavy capex over the rating horizon till 2023,” the agency said.

The outlook is stable.

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