Research Update: Contemporary Amperex Technology Upgraded To 'A-' On Sustained Business Growth, Low Leverage; Outlook Stable

Contemporary Amperex Technology Co. Ltd. (CATL) has been sustainably expanding its business and geographical reach amid ongoing electrification globally. The China-based battery maker's overseas expansion should mitigate slowing domestic growth. Profit expansion will drive growth in operating cash flow (OCF). This, together with disciplined capital expenditure (capex), should help the company stay in a net cash position in 2024-2025. On May 7, 2024, S&P Global Ratings raised its long-term issuer credit rating on CATL and the long-term issue rating on the senior unsecured notes the company guarantees to 'A-' from 'BBB+'. The stable outlook reflects our view that CATL will remain a global leader in the battery industry. Business growth will drive profit and cash flow expansion that is more

...- Contemporary Amperex Technology Co. Ltd. (CATL) has been sustainably expanding its business and geographical reach amid ongoing electrification globally. The China-based battery maker's overseas expansion should mitigate slowing domestic growth. - Profit expansion will drive growth in operating cash flow (OCF). This, together with disciplined capital expenditure (capex), should help the company stay in a net cash position in 2024-2025. - On May 7, 2024, S&P Global Ratings raised its long-term issuer credit rating on CATL and the long-term issue rating on the senior unsecured notes the company guarantees to 'A-' from '###+'. - The stable outlook reflects our view that CATL will remain a global leader in the battery industry. Business growth will drive profit and cash flow expansion that is more than sufficient to cover its capex. The company should maintain a net cash position over the next 24 months....

Research Update