Moody's changes VNET outlook to negative

Moody's Investors Service said it affirmed VNET Group, Inc.'s B2 corporate family rating and changed its outlook to negative from stable.

"The change in outlook to negative reflects our view that it has taken longer than expected for VNET to reduce its debt leverage to below 6x on a sustained basis, and its significant refinancing task to bolster its weakened liquidity position amid a tight funding environment," said Shawn Xiong, a Moody's vice president and senior analyst, in a press release.

The agency said it forecasts VNET’s revenue to widen by 17%-20% over the next 12-18 months, driven primarily by the increasing use of its new cabinets. The company's revenue grew by 27% and 28% in 2020 and 2021, respectively.

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