Fitch rates eHi Car notes BB-

Fitch Ratings said it assigned an expected rating of BB- to eHi Car Services Ltd.'s proposed dollar-denominated notes.

The proposed notes are rated at the same level as eHi's senior unsecured rating as they constitute its direct and senior unsecured obligations.

The agency recently revised the company's outlook on eHi's long-time foreign-currency issuer default rating to negative to reflect the company's higher leverage, ongoing capital expenditure requirements and an expectation that de-leveraging is not probable in the next few years.

Fitch said it expects eHi's FFO adjusted net leverage to remain higher than 3x over the next few years even though the company is starting to moderate its expansion and capital expenditure plans for 2017.

The proceeds from the proposed note issue will be used for early repayment of its syndicated loan that has tight covenants, which will give the company more financial flexibility, the agency said.

eHi remains one of China's leading car rental companies with majority market share in Shanghai and eastern China, Fitch said.

© 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.