Fitch places eHi on negative watch

Fitch Ratings said it placed eHi Car Services Ltd.'s B long-term issuer default and senior unsecured ratings on rating watch negative. The recovery rating on the notes remains RR4.

“The RWN reflects execution risk in refinancing or repaying eHi's US dollar bond maturing in November 2024. While eHi's operations have been recovering following the removal of Covid-19 restrictions, the company's new-vehicle purchases have been more than Fitch's expectation, which caused liquidity to deteriorate in the past few months,” Fitch said in a press release.

The company will likely need a combination of funding sources to repay its $450 million of 7¾% senior unsecured notes, the agency said.

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