S&P Upgrades China Merchants Port Holdings to A- on Cash Flow Increase
S&P Global Ratings has boosted China Merchants Port Holdings' (HKG:0144) long-term issuer and issue credit ratings to A- from BBB+, according to a recent release.The upgrade stems from further improvements in the port operator's cash flow from its diversified operations even with volatile global trade, S&P said.Container growth will be between 2% and 3% over 2026 and 2027, supported by trades in China and Southeast Asia.The port operator's gross throughput expanded 3.8% annually to 151 million twenty-foot equivalent containers in 2025 and continued growing by 4.2% in the first five months of 2026.Stable business, controlled shareholder returns, and reduced acquisitions should support debt reduction, the rating agency said.The outlook is stable, stemming from the company's stable operating environment and parent China Merchants Group's credit quality, according to S&P.The company continues to be a highly strategic subsidiary for its parent amid its status as a key arm for the group's port businesses.Notable shifts in the parent's credit profile, the company's acquisitions or capital expenditures, or port throughput growth could lead to future rating actions.
