S&P cuts Chalieco

S&P said it downgraded China Aluminum International Engineering Corp. Ltd. (Chalieco) to BB from BB+ and the rating on its guaranteed senior perpetual notes to BB- from BB.

“We downgraded Chalieco because the company's financial performance is unlikely to improve significantly over the next 12 months after a deterioration in 2019. The company's 2019 performance was well below our expectation, mainly because of declining revenue and margins in the nonferrous E&C segment and higher impairment of accounts receivables,” S&P said in a press release.

The agency said it sees the company growing its revenue by 5%-8% in 2020-2021. Despite a tough first quarter due to the coronavirus, S&P said it sees the company ramping up construction activities to make it up.

The outlook is stable.

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