...HONG KONG (S&P Global Ratings) Nov. 3, 2022--China Tourism Group Corp. Ltd.'s (CTG) revenue and profitability are likely to weaken this year. This stems from the COVID-19 resurgence and related pandemic measures in China. S&P Global Ratings expects those factors to raise CTG's leverage to or near 3x. However, we believe reduced company spending and some travel recovery in 2023 will improve leverage. By our latest estimates, CTG's (A-/Stable/--) revenue for 2022 will fall 11.4%, compared with our previous projection of 1%-2% growth. CTG's third-quarter results came short of our expectations. Its largest revenue contributor, duty-free retail business, declined 16% year on year. Total revenue for the third quarter rose 15% year on year, propelled by property payments. Revenue for the first nine months dropped 10% year on year. The 1.5-month COVID-19-related lockdown in Hainan hit CTG particularly hard, especially its duty-free retail sales in the province, which contributed over half of the...
