Moody’s cuts Meinian Onehealth

Moody’s Investors Service said it downgraded the corporate family rating of Meinian Onehealth Healthcare Holdings Co., Ltd. to B1 from Ba3. At the same time, Moody’s downgraded the senior unsecured rating on the bonds issued by Mei Nian Investment Ltd. and guaranteed by Meinian Onehealth to B1 from Ba3.

“The downgrade reflects our view that Meinian Onehealth’s strategy to shift to a premium service offering has been more challenging than previously expected and that its leverage will remain elevated over the next 12-18 months, amid a significant deterioration in revenue and earnings during the first half of 2020,” said Shawn Xiong, a Moody’s assistant vice president and analyst, in a press release.

The B1 rating also considers the operational benefits and support from Alibaba affiliates as the company’s second-largest shareholder group, the agency said.

The outlook remains negative.

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