We expect TCL Electronics Holdings Ltd. to maintain its strong position as the second-largest global TV manufacturer, with wide geographic coverage, steady gain in shipment share, and low debt. The company's high concentration in the TV business and intense industry competition temper these strengths. We consider TCL Electronics to be a core subsidiary of TCL Industries Holdings Co. Ltd. TCL Electronics accounts for the majority of the group's revenue and serves as its most important asset and primary overseas sales platform. We are assigning our 'BBB-' issuer credit rating to TCL Electronics. The stable outlook reflects our view that TCL Electronics and TCL Industries will maintain healthy profitability and low leverage over the next two years. We believe TCL Electronics
