Fitch rates 21Vianet notes B+

Fitch Ratings said it assigned long-term foreign-currency and local-currency issuer default ratings of B+ to 21Vianet Group, Inc.

The outlook is stable.

The agency also assigned an expected rating of B+(EXP) with a recovery rating of RR4 to the company's proposed dollar-denominated senior unsecured notes.

The ratings reflect the company's small market share, weak parental linkage and high leverage, Fitch said.

The ratings are counterbalanced by improving margins, the agency noted.

The proceeds from the proposed senior unsecured notes will be used for refinancing its outstanding indebtedness, fund future capital needs and general corporate purposes, Fitch said.

The RR4 recovery rating reflects an expected default recovery of 31% to 50%.

The company has differentiated itself from its domestic competitors and has become a leading domestic carrier-neutral service provider by focusing on hosting and related services, Fitch said.

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