Fitch Upgrades CATL to 'A-', With Stable Outlook

Fitch attributed the upgrade to its view that CATL's business profile has become increasingly robust. The company's performance in 2022 and 1Q23 demonstrates solidification of its dominant market share, technological capability and capacity leadership. These are commensurate with or stronger than peers' in the respective industries.

Fitch also believed CATL's financial profile remains supportive of the rating although free cash flow (FCF) will trend toward neutral only by 2024, as its current high capital expenditure cycle can be funded by operating cash flow and equity proceeds raised.

The Stable outlook reflected Fitch's expectation that CATL will continue to maintain its leading global market position, and have a strong order book that supports future growth with adequate leverage headroom.