Geely Auto's Moody's Rating Raised To Baa3, Outlook Cut To Stable

Moody's has assigned Geely Auto (00175) a Baa3 issuer rating, withdrawn its Ba1 corporate family rating, and revised the outlook to stable, according to ETNet. Moody's analyst Daniel Zhou said the action reflects Geely's long-term gains in market share and profitability despite intense industry competition, supported by a broader global footprint, a richer product lineup, stronger operating fundamentals, low leverage, solid liquidity and ample cash reserves. Geely's sales rose 2% in the first seven months of the year, outperforming the market as industry-wide sales fell 3.7%, with overseas sales surging 165%. Moody's expects the momentum to continue and sees Geely's sales rising 5% to 10% over the next 12 to 18 months as new models launch, overseas capacity ramps up and domestic demand normalises after the effect of 2025 stimulus fades.