Moody’s shifts CAR outlook to negative

Moody’s Investors Service said it revised its outlook for CAR Inc. to negative from stable and affirmed its B3 corporate family and senior unsecured ratings.

"The negative outlook reflects our expectation that CAR will face increased liquidity risk on the back of upcoming maturities, in particular the U.S. dollar bond that is due in March 2024, amid a tightened funding environment," said Gerwin Ho, a Moody's vice president and senior credit officer, in a press release.

"Nonetheless, CAR's industry position in China's car rental market remains strong, the company's business model maintains a certain level of financial flexibility in terms of its adjustable capacity and the ability to reduce its fleet to generate liquidity, and it has a track record of refinancing maturities, all of which underline the rating affirmation," Ho added.

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