China Hongqiao Group Ltd.'s financial policy will likely turn more disciplined over the next 12-24 months with reduced growth appetite. We expect the company's moderate capex to help it maintain positive free operating cash flows during this period. This, together with ample cash on hand provides sufficient room for debt reduction. On April 9, 2019, S&P Global Ratings revised its outlook on Hongqiao to positive from stable. At the same time, we affirmed our 'B+' long-term issuer credit rating on the China-based aluminum producer. The positive outlook reflects our view that greater financial discipline will likely speed up Hongqiao's debt-repayment progress and provide it with more buffer against industry uncertainties. We revised the outlook to positive because we expect Hongqiao
