Fitch upgrades eHi

Fitch Ratings said it upgraded eHi Car Services Ltd.'s long-term issuer default and senior unsecured ratings to B from B-. The recovery rating on the debt is RR4.

“The upgrade reflects Fitch's expectation that eHi's cash generation will improve and leverage will moderate as operations normalize following Covid-19-related disruptions. We expect its liquidity to stabilize as operating cash flow resumes and receivables collection risk eases, but meaningful deleveraging is unlikely. The ratings are constrained by high leverage and concentration in capital-market debt maturity, particularly a U.S. dollar bond maturing in November 2024,” the agency said in a press release.

Additionally, Fitch said it sees eHi Car’s refinancing risks declining as its business rebounds.

The outlook is stable.

© 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.