Bulletin: Fufeng Group Ltd.'s Profit Warning Has No Effect On Ratings Feb 12
- ID: 2054561
- February 2012
- Standard & Poors
HONG KONG (Standard & Poor's) Feb. 9, 2012--Standard & Poor's Ratings Services said today that its rating and outlook on Fufeng Group Ltd. (BB/Stable/--; cnBBB-) are not affected by the company's recent profit warning. Standard & Poor's believes that Fufeng's good operating efficiency and improving market position mitigate the risk of a decline in the company's gross margin. We expect Fufeng to have maintained its EBITDA margin at about 15% in 2011. We also expect the ratio of adjusted total debt to EBITDA to have been at or lower than 3x, which is still below our downgrade trigger of 3.5x. While our rating on Fufeng incorporates a degree of margin and earnings volatility, it could come under pressure if the...
Companies mentioned in this report are: Fufeng Group Ltd.
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