Research Update: Hikvision 'A-' Rating Affirmed, Outlook Stable; Stand-Alone Credit Profile Revised Up To 'bbb'

We see increasing signs of resilient cash flow and operations for Hangzhou Hikvision Digital Technology Co. Ltd. (Hikvision). This is shown by the China-based company's ability to sustain positive free cash flows despite its placement on the U.S. Entity List and the COVID-19 pandemic. We have therefore revised our assessment of Hikvision's stand-alone credit profile (SACP) to 'bbb' from 'bbb-'. On March 18, 2021, S&P Global Ratings affirmed its 'A-' long-term issuer credit rating on Hikvision. The stable outlook reflects our view that Hikvision will maintain a stable supply chain, solid sales growth, and net cash position over the next two to three years. We revised our assessment of Hikvision's SACP because we believe the resilience of the company's operations

...- We see increasing signs of resilient cash flow and operations for Hangzhou Hikvision Digital Technology Co. Ltd. (Hikvision). This is shown by the China-based company's ability to sustain positive free cash flows despite its placement on the U.S. Entity List and the COVID-19 pandemic. - We have therefore revised our assessment of Hikvision's stand-alone credit profile (SACP) to '###' from '###-'. - On March 18, 2021, S&P Global Ratings affirmed its 'A-' long-term issuer credit rating on Hikvision. - The stable outlook reflects our view that Hikvision will maintain a stable supply chain, solid sales growth, and net cash position over the next two to three years....

Research Update