On June 5, in a report released by S&P Global Ratings, it announced the revision of the outlook on Far East Horizon Limited (Fehorizon)’s credit ratings from “negative” to “stable;” meanwhile, the assessment of the Company’s stand-alone credit profile (SACP) was adjusted from “bb+” to “bbb-,” and its “BBB-” long-term and “A-3” short-term issuer credit ratings were also confirmed.

According to the expectation of S&P, Fehorizon’s profit status will remain higher than that of leasing companies affiliated to Chinese-funded banks, and the Company’s business scale and risk management system also have certain comparative advantages over other leasing companies in the Asia-Pacific region. Also, during the pandemic, the Company has demonstrated tenacity in operating performance, achieved certain improvement of capital level and managed to maintain stable quality of assets. On account of the reasons above, S&P has adjusted the independent credit ratings of Fehorizon from “bb+” to “bbb-.”

In addition, the S&P report mentioned that Fehorizon’s capital position received further improvement due to the IPO of its integrated equipment operation service provider Horizon Construction Development (09930.HK) on the Hong Kong Stock Exchange in May.

The adjustment of the outlook on Fehorizon’s credit ratings to “stable” is mainly due to the belief of S&P that in the future two years, Fehorizon will maintain strong market standing and profitability advantages relative to the leading enterprises in China’s leasing industry. Furthermore, S&P estimates that the Company will keep its asset quality stable and superior to the average industry level, and maintain its improved capital position.

This improvement of Fehorizon’s international credit ratings is another proof of the correctness and effectiveness of the Company’s “finance + industry” strategy. Against the backdrop of the new operation and development stage of “globalization of resources and globalization of operation,” in the future Fehorizon will continue to take “integrating global resources and promoting industry development” as its mission, keep strengthening institutional cooperation and expanding financing channels in terms of resource guarantee, continue to innovate the financial means to serve entities, and offer continuous, effective and incremental value creation to various parties of the society.