The stable outlook on Midea Group Co. Ltd. reflects our expectation that the company will maintain its strong market position in China's home appliances industry over the next 24 months and that Midea can effectively integrate recent acquisitions into its operations. We also expect Midea to maintain a debt-to-EBITDA ratio near zero and generate positive free operating cash flows, supported by the company's strong profitability, good working capital efficiency, and disciplined financial management. We could lower the rating if Midea takes on large acquisitions or makes high cash dividend payments beyond what has been reasonably built into our base-case forecast. Such transactions could reduce the transparency in the company's financial policy or the predictability of company's credit ratios. The debt-to-EBITDA
