Fitch trims VNET

Fitch Ratings said it downgraded VNET Group, Inc.'s long-term foreign- and local-currency issuer default ratings to B from B+.

“The downgrade reflects higher-than-expected debt-funded capex in the medium term. As a result, Fitch forecasts that its total debt/EBITDA will remain above 5.5x in 2022-2023 (2021 estimate: 5.5x). We believe that VNET will prioritize growth over deleveraging in the medium term, as it continues to benefit from robust demand for data centers from Chinese internet companies and public cloud service providers such as Alibaba Group Holding Ltd. (A+/stable),” 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.