S&P raises eHi Car

S&P said it upgraded eHi Car Services Ltd. and its outstanding senior notes to B+ from B and removed them from CreditWatch with positive implications.

On Sept. 13, the agency gave the company’s planned $300 million of five-year notes a preliminary B+ rating and placed its ratings on CreditWatch with positive implications.

“The upgrade reflects the lengthening of eHi's weighted average debt maturities to more than three years, following the issuance of its $300 million five-year notes due September 2026. We estimate the notes will provide the company with enough liquidity to refinance its debts and support car fleet expansion, within our base-case scenario, until at least the end of June 2023,” S&P said in a press release.

The agency noted eHi could use some of the proceeds for the tender offer for its 2022 senior unsecured notes of about $67 million. About $185 million of the 2022 notes remain outstanding. The company could use the remaining proceeds to refinance some of its higher-interest lease liabilities.

The outlook is stable.

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