S&P revises Golden Eagle (03308) outlook to positive

   S&P Global Ratings revised their outlook on Golden Eagle Retail Group Ltd. (03308) to positive from stable because they expect the company to maintain steady operating cash flow over the next 12 months, supported by its efforts to improve the merchandising mix and operating efficiency. They also believe Golden Eagle will be disciplined on capital expenditure and control leverage against the tough backdrop for traditional retailers in China. They expect the company's debt-to-EBITDA ratio to stay below 2.0x in 2019 and 2020, compared with 1.3x in 2018.
   They affirmed the "BB" long-term issuer credit rating on Golden Eagle and the "BB-" long-term issue rating on the company's senior unsecured notes. They expect the operating environment in China's department store sector to remain challenging, which could hamper Golden Eagle's operating performance and its short track record of maintaining low leverage. However, Golden Eagle has delivered steady operating performance over the past 18 months, despite fierce competition from online operators. This is owing to the company's efforts to adjust and upgrade its merchandise and services offerings to enhance the shopping experience.