Fitch upgrades CATL

Fitch Ratings said it raised Contemporary Amperex Technology Co., Ltd.'s (CATL) long-term foreign-currency issuer default rating and senior unsecured rating to A- from BBB+.

“The upgrade reflects Fitch's view that CATL's business profile has become increasingly robust. The company's performance in 2022 and 1Q23 demonstrates the solidification of its dominant market share, technological capability and capacity leadership. These are commensurate with or stronger than peers' in the respective industries.

“Fitch believes CATL's financial profile remains supportive of the rating although free cash flow (FCF) will trend toward neutral only by 2024, as its current high capex cycle can be funded by operating cash flow and equity proceeds raised,” the agency said in a press release.

The outlook is stable.

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