"This underlines our view that deleveraging
in Europe is driven more by limited access to funding, or its high cost, rather than by the higher capital demands on banks.
The agency expects 2018 funds from operations (FFO) adjusted net leverage to be 7.0x, which is higher than similarly rated peers but the company's deleveraging
path is faster, with 2020 FFO adjusted net leverage forecast to reach 5.5x.
Shareholders Focus on Deleveraging
: In February 2018 Summa Equity, a fund established in 2016, acquired NG from Altor funds.
With Outlook on the IDR Stable, the upgrade reflects the stabilisation in its core retail business and deleveraging
supported by cash inflows from property development.
Working capital also improved, as note receivables declined by CNY1.8 billion, helping fund the company's deleveraging
. Management has indicated its desire to further deleverage via assets disposals.
The company's enhanced fleet size provides another layer of protection to senior lenders and could become an additional source of cash flow to support its deleveraging