...HONG KONG (S&P Global Ratings) July 6, 2017--S&P Global Ratings said today that its corporate credit rating on China-based Midea Group Co. Ltd. (A-/Stable/--; cnAA/--) is not affected by recent news reports of losses related to Chinese renminbi (RMB) 1 billion of wealth management products (WMPs) owned by a subsidiary, Hefei Midea Refrigerator Ltd. Co. Our 'A-' long-term issue ratings and 'cnAA' long-term Greater China regional scale ratings on Midea's guaranteed medium-term notes program and drawdowns are also not affected. In our calculation of net debt and financial ratios, we included Midea's roughly RMB26 billion of WMPs because we view these products as typically short term in nature and involving relatively low risks. We believe the company's low debt leverage and the 25% surplus cash haircut provide enough buffer against losses at this scale. We also believe that Midea's internal control demonstrates some ability to evaluate and manage its investments, since its own daily financial...
