S&P rates eHi Car Services notes BB-

Standard & Poor’s said it assigned its BB- long-term issue rating and cnBB+ long-term Greater China regional scale rating to the proposed issue of U.S. dollar-denominated senior unsecured notes by eHi Car Services Ltd. (BB/stable/--; cnBBB-/--).

S&P rates the proposed notes one notch below the long-term corporate credit rating on eHi.

S&P said the corporate credit rating on eHi reflects the company’s small scale compared with global peers', aggressive capital expenditure through external funding, and its operations in China's fragmented and highly competitive car rental and chauffeur services industry.

These factors are tempered by eHi's relatively good domestic market position, improving profitability and cash flow generation, and China's favorable long-term growth, the agency said.

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