Moody's revises CAR view to negative

Moody's Investors Service said it affirmed CAR Inc.'s B1 corporate family rating and senior unsecured rating and changed the outlook to negative from stable.

"The negative outlook reflects our concern over CAR's weakening revenue trend in 2020, which is below our earlier expectation," said Gerwin Ho, a Moody's vice president and senior credit officer, in a press release. "The sluggish revenue trend will pressure the company's EBITDA generation and elevate its debt leverage."

The sluggish revenue trend was highlighted in CAR's profit warning. The company announced on Friday it expects net profit for 2019 to fall by more than 80%, compared to a net profit of RMB 290 million in 2018. Nonetheless, it expects EBITDA to grow by over 6% year-on-year to over RMB 3.4 billion in 2019, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.