Hong Kong: Ratings agency Standard & Poor’s today issued a report on China Merchants Holdings (International), one of China’s top port operators, that gives a good reflection of the slowing growth rates at ports in the PRC.
S&P expects average container throughput growth at CMHI's ports to fall to 5% in 2012-2013, from 9.6% in 2011 with home base, western Shenzhen to be essentially flat. Likewise, revenue growth at CMHI's port operation, S&P maintains, is likely to be flat or modest over the next 12-18 months.
While noting CMHI’s “good record of disciplined financial management and executing a strategy focused on its port business, which generates stable cash flows,” S&P was concerned at the company's “complex corporate structure, reliance on dividends from affiliates, moderately aggressive debt-funded expansion plan, and project execution”. [31/07/12]