Moody’s revises Meituan outlook to negative

Moody's Investors Service said it affirmed Meituan's Baa3 issuer rating and senior unsecured rating and revised the outlook to negative from stable.

“The negative outlook reflects faster-than-expected growth in Meituan's community e-commerce segment, which will dampen earnings, raise leverage and generate negative free cash flow over the next 12 to 18 months. Both investments and operating losses from this segment exceeded our prior expectations in 4Q 2020, and are likely to remain elevated in the coming quarters,” said Ying Wang, a Moody's vice president and senior analyst, in a news release.

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