S&P lowers eHi Car Services

S&P said it lowered its long-term issuer credit rating on eHi Car Services Ltd. to BB- from BB.

The outlook is stable.

At the same time, the agency lowered the issue rating on the company's outstanding dollar-denominated debt to BB- from BB.

S&P also removed all ratings from CreditWatch with negative implications, where they were placed on April 17, when the company announced privatization plans.

The agency said it downgraded eHi because it anticipates the company’s credit measures will improve at a rate slower than S&P initially expected.

“While eHi should be able to increase its profit margins given the increased scale, such benefits cannot effectively mitigate risks from quickly rising debt,” S&P said in a news release.

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