We believe Midea has sufficient cash and strong operating free cash flow to absorb recent large acquisition expenditure with immaterial impact to its key credit metrics over the next 12-24 months. We also expect Midea to return to revenue growth in the second half of 2016, due to a recovery in the air-conditioner segment and its strong positioning in the faster-growing small home appliances segment. We are affirming our 'A-' long-term corporate credit rating and our 'cnAA' long-term Greater China regional scale rating on the China-based home appliances manufacturer. We are also affirming our 'A-' and 'cnAA' issue ratings on Midea's guaranteed MTN program and drawdowns. The stable outlook reflects our expectation that Midea will sustain its strong market position,
