Fitch downgrades Meinian

Fitch Ratings said it downgraded Meinian Onehealth Healthcare Holdings Co., Ltd.’s long-term issuer default rating and senior unsecured rating to BB- from BB.

Fitch also downgraded the rating on Meinian’s $200 million 7¾% senior unsecured notes due April 2021 to BB- from BB. Mei Nian Investment Ltd. issued the notes.

“The downgrade takes into account Fitch’s expectation that Meinian’s leverage will remain high due to persistent negative free cash flow (FCF) and weak FFO fixed-charge coverage. Revenue increased by 1% in 2019, much slower than the 35% in 2018 and our forecast of 13%, due to a decrease in 4Q20. Although capital intensity in 2019 fell compared to 2018, the weaker profitability caused FFO adjusted net leverage to rise to 4.7x in 2019 from 3.8x in 2018,” the agency said in a press release.

The outlook is stable.

© 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.