S&P rates eHi Car notes B+

S&P said it gave a preliminary B+ rating to eHi Car Services Ltd.’s planned dollar-denominated senior unsecured notes.

Concurrently, the agency placed its B long-term issuer credit rating and its B issue level rating on eHi on CreditWatch with positive implications.

“The proposed notes issuance and tender offer for 2022 notes will improve the company's maturity profile and liquidity. Our CreditWatch placement with positive implications reflects the lengthening of eHi's weighted average debt maturities to more than three years, following the issuance of its proposed notes. This represents a material improvement in its weighted average maturities, which were under two years at the end of 2020,” S&P said in a press release.

The company will likely use the proceeds for refinancing. “Should the tender offer not materialize, or if the tender is less-than-expected, the company could still use the proceeds to refinance some of its higher-interest lease liabilities from its program-car arrangements.”

© 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.