Moody's upgrades Xiaomi's credit rating to "Baa1" with a revised outlook to "stable"

Rating agency Moody's has upgraded the issuer rating of Xiaomi Corporation-W (01810.HK) and the senior unsecured rating of bonds issued by Xiaomi Best Time International Limited and guaranteed by Xiaomi from "Baa2" to "Baa1". At the same time, the rating outlook has been revised from "positive" to "stable".

Gerwin Ho, Vice President and Senior Credit Officer at Moody's, stated that this rating upgrade reflects Xiaomi's performance in the new energy smart electric vehicle (EV) and Internet of Things (IoT) smart hardware and lifestyle products business, which has exceeded Moody's previous expectations, further enhancing its already strong business strength. The better-than-expected improvement in revenue and profitability supports Xiaomi's robust financial condition, characterized by low leverage and excellent liquidity, which Moody's expects to continue over the next 12 to 18 months.

Gerwin Ho added that the rating upgrade also reflects Xiaomi's consistently prudent investment strategy and balanced use of financing channels when expanding the scale and scope of its business. These factors, along with its strong net cash position, will provide a credit buffer against business and economic uncertainties