Research Update: Inner Mongolia Yili Industrial Group Ratings Outlook Revised To Stable On Financial Discipline; 'A-' Rating Affirmed

We believe Inner Mongolia Yili Industrial Group Co. Ltd.'s (Yili) disciplined financial policy, robust organic growth, and stable free cash flow should support its minimal leverage position while the company strives to become the world's top three dairy firm by 2025. The China-based dairy maker's recent share placement of Chinese renminbi (RMB) 12 billion will strengthen its financial buffer and maintain debt-to-EBITDA ratio at around 1x. On Feb. 17, 2022, S&P Global Ratings revised its rating outlook on Yili to stable from negative. At the same time, we affirmed the 'A-' long-term issuer credit rating on Yili. We also affirmed the 'A-' issue rating on the senior unsecured notes that Yili guarantees. The stable outlook reflects our view that Yili

...- We believe Inner Mongolia Yili Industrial Group Co. Ltd.'s (Yili) disciplined financial policy, robust organic growth, and stable free cash flow should support its minimal leverage position while the company strives to become the world's top three dairy firm by 2025. - The China-based dairy maker's recent share placement of Chinese renminbi (RMB) 12 billion will strengthen its financial buffer and maintain debt-to-EBITDA ratio at around 1x. - On Feb. 17, 2022, S&P Global Ratings revised its rating outlook on Yili to stable from negative. At the same time, we affirmed the 'A-' long-term issuer credit rating on Yili. We also affirmed the 'A-' issue rating on the senior unsecured notes that Yili guarantees. - The stable outlook reflects our view that Yili will have the ability and discipline to keep leverage low despite its growth targets over the next 12-24 months....

Research Update