...February 1, 2021 HONG KONG (S&P Global Ratings) Feb. 2, 2021--S&P Global Ratings today said that the recent downgrade of Germany-based KUKA AG (##+/Stable/--) will not erode parent company Midea Group Co. Ltd.'s (A-/Positive/--) credit strengths. Midea is a China-based manufacturer of household appliances. On Feb. 1, 2021, we lowered our rating on KUKA, an industrial robotics company, to '##+' from '###-' due to significant deterioration in profitability on weakening demand caused by the COVID-19 pandemic. We expect KUKA to have accounted for about 7% and 0.1% of Midea's revenue and EBITDA, respectively, in 2020, which are fairly small proportions. KUKA is important to Midea in terms of its longer-term plan to grow in advanced manufacturing and automation. Midea's manufacturing of home appliances still generates the bulk of its revenue and profits, and we do not expect this to change notably. We anticipate Midea will gain market share both domestically and internationally. The company is...
