Lianhe Ratings Global Limited (“Lianhe Global”) has upgraded the global scale Long-term Issuer Credit Rating of Kasen International Holdings Limited to ‘BBB-’ from ‘BB+’; Issuer Rating Outlook Stable
The Issuer Rating upgrade to ‘BBB-’ reflects Kasen International Holdings Limited’s (496.HK) (“Kasen” or “the company”) improvement in profitability and operating performance, improving financial performance and matrix supported by its expanding oversea business and established market presence in the upholstered furniture sector. Additionally, Kasen has maintained low financial leverage and debt levels through its strategic disposal of domestic assets. However, Kasen’s rating is constrained by the concentration risks and moderate liquidity.
The Stable Outlook reflects our expectation that Kasen will continue to maintain its low leverage and manage its debt level prudently, and maintain its profitability in the following 12 to 24 months.