S&P puts Haidilao on watch

S&P said it placed the BBB ratings of Haidilao International Holding Ltd. and its senior unsecured notes on CreditWatch with negative implications.

“The company announced in its profit warning on Feb. 21, 2022, that it expects to record a net loss of Chinese renminbi (RMB) RMB 3.8 billion-RMB 4.5 billion in 2021, with one-off losses of RMB 3.3 billion-RMB 3.9 billion. The weaker cash flows would lead to a higher net debt level than we anticipated,” S&P said in a press release.

The agency warned Haidilao’s weaker cash flow could keep the company's debt leverage above 1.5x longer than expected.

The agency said it aims to resolve the CreditWatch after Haidilao reports its results for 2021.

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