Research Update: China State Construction International Outlook Revised To Stable On Improving Cash Flow Prospect; 'BBB' Rating Affirmed

Market normalization from pandemic and a shift in China State Construction International Holdings Ltd.'s (CSCI) business mix toward projects with a shorter cash collection cycle should help the company to improve its cash flow and leverage in 2021 and 2022. We believe CSCI will sustain its engineering and construction (E&C) market position in mainland China, Hong Kong, and Macau, supporting healthy new order intake and revenue growth. On Aug. 30, 2021, S&P Global Ratings revised its rating outlook on CSCI to stable from negative. We affirmed the 'BBB' long-term issuer credit rating on the company. The stable outlook reflects our view that CSCI will likely deleverage over the next two years. Expansion in profit and moderating debt growth amid the

...- Market normalization from pandemic and a shift in China State Construction International Holdings Ltd.'s (CSCI) business mix toward projects with a shorter cash collection cycle should help the company to improve its cash flow and leverage in 2021 and 2022. - We believe CSCI will sustain its engineering and construction (E&C) market position in mainland China, Hong Kong, and Macau, supporting healthy new order intake and revenue growth. - On Aug. 30, 2021, S&P Global Ratings revised its rating outlook on CSCI to stable from negative. We affirmed the '###' long-term issuer credit rating on the company. - The stable outlook reflects our view that CSCI will likely deleverage over the next two years. Expansion in profit and moderating debt growth amid the company's business transformation should help to enhance its financial headroom....

Research Update