Midea has a strong market position, good profitability, and minimal debt leverage, in our view. The company's concentration in the highly competitive home appliances market in China, weaker product diversity, and less established brand in overseas markets temper these strengths. We are assigning our 'A-' long-term corporate credit rating and 'cnAA' long-term Greater China regional scale rating to the China-based home appliances manufacturer. The stable outlook reflects our expectation that Midea will sustain its strong market position, generate positive free operating cash flow, and remain debt free on an adjusted basis over the next 24 months, despite intense market competition. On Nov. 18, 2015, Standard&Poor's Ratings Services assigned its 'A-' long-term corporate credit rating to Midea Group Co.
