We expect China Hongqiao Group Ltd. (Hongqiao) to maintain its improved financial and liquidity profile for the next one to two years. Healthy operating cash flow (OCF) amid resilient aluminum prices support our assessment. That said, high reliance on short-term debt has weighed on Hongqiao's capital structure. We anticipate that will improve over the next two years through a lengthening of the China-based aluminum producer's debt maturity profile. On April 15, 2025, S&P Global Ratings raised its long-term issuer credit rating on Hongqiao to 'BB' from 'BB-'. The stable outlook reflects our view that the company's solid OCF will be sufficient to cover its capital outlay, such that the integrated producer?s leverage will remain low during 2025-2026. We also expect
