S&P assigns Delta Electronics BBB+

S&P said it assigned Delta Electronics Inc. a BBB+ issuer rating with a stable outlook. The agency does not rate Delta’s bond issues.

Delta is a Taiwan-based power electronics, automation and infrastructure power solutions provider, generating EBITDA of about NT$ 60.5 billion in 2022. “Delta could sustain its leading position in the global power supply and thermal component market and maintain slightly above 10% revenue growth over the next two years. However, fast growth in less profitable electric vehicles (EVs) could lower its overall margin slightly,” the agency said in a press release.

“Delta is likely to maintain a sound capital structure despite a significant appetite for growth through investments and M&As. Delta should be able to remain debt-free on an adjusted basis over the next two years, backed by strong free operating cash flow and a prudent cash dividend policy,” S&P said.

The stable outlook indicates that it can maintain its profitability and net cash position over the next two years, the agency said.

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