Moody's lifts Citic Group to stable

Moody's Investors Service said it changed to stable from negative the outlook on Citic Group Corp.'s and Citic Ltd.'s A3 issuer rating.

Moody's also said it affirmed Citic Group's and Citic's A3 issuer rating, as well as on the A3 senior unsecured ratings on Citic's bonds and Citic Group's Japanese yen bonds and the provisional A3 rating on Citic Ltd.'s medium-term notes program.

The outlook reflects the expected improvement in the credit profile of Citic Group's non-financial service businesses, such as resource and energy, manufacturing, engineering and contracting and real estate, Moody's said.

Such improvement is driven by the restructuring of Citic Group's businesses, such as the spin-off of its property portfolio and the disposals of other assets, the agency said.

The ratings support the diversification into less cyclical businesses, such as fast food restaurant chains, environmental service and modern agriculture, Moody's said.

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