We expect CITIC Resources Holdings Ltd.'s financial leverage to remain much lower in the next 12 months than during the industry trough of 2015-2016, mainly on a recovery in oil prices. We expect the company's non-oil businesses to continue to contribute stable cash flows. On May 21, 2019, S&P Global Ratings revised its outlook on CITIC Resources to positive from stable. At the same time, we affirmed our 'BB-' long-term issuer credit rating on the Hong Kong-based oil producer. The positive outlook reflects our expectation that CITIC Resources will maintain its leverage at a much lower level than during the industry trough of 2015-2016. We revised the outlook to positive to reflect our view that CITIC Resources' profitability will be
