Midea Group Co. Ltd. will continue to strengthen its market position in China and overseas markets in major home appliances and commercial-related heating, ventilation, and air conditioning (HVAC) products. Robust cash flow will deepen the company's net cash position despite difficult operating conditions and higher spending on acquisitions and shareholder returns. We raised our long-term issuer credit rating on Midea to 'A+' from 'A'. At the same time, we raised our long-term issue credit ratings on the company's guaranteed senior unsecured notes to 'A+' from 'A'. The stable rating outlook reflects our view that Midea will solidify its overseas position in home appliances and capital goods. This will more than offset any softness in domestic appliance demand over the next
