China Modern Dairy Holdings Ltd. (CMD) is set to benefit from an expected recovery in raw milk prices. Accordingly, S&P Global Ratings expects the company’s profits to rise sufficiently to reduce its debt ratio; the credit profile rating has been upgraded from ‘b’ to ‘b+’.
On 10 September 2026, S&P Global Ratings affirmed CMD’s long-term issuer rating at ‘BBB’ and the long-term issue rating on the company’s senior unsecured bonds at ‘BBB’.
The positive outlook for CMD over the next 24 months reflects the outlook for its parent company, Mengniu, as well as the expectation that CMD will continue to be a strategic subsidiary. CMD’s rating and outlook will evolve in line with those of Mengniu.
CMD is one of the two leading dairy farming operations in China. At the end of 2025, the company operated 47 farms across 14 provinces in China, with a herd of around 450,000 cows. In 2025, CMD sold more than 88 per cent of its raw milk to Mengniu, China’s second-largest dairy processor. CMD is Mengniu’s largest supplier of raw milk and meets one-third of the parent company’s milk requirements. CMD’s production facilities, operations and future development are closely intertwined with those of Mengniu. For example, CMD’s five-year growth plan is aligned with Mengniu’s growth targets.
