Fitch downgrades 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 our view that VNET's liquidity is relatively weak and that it does not have the funds to meet its likely obligations over the next 12 months. In addition, we believe the company's access to capital is relatively weak. VNET is exploring multiple capital-raising options, but we have limited visibility on when sufficient funds will be in place.

“Liquidity could be insufficient to meet a $600 million put payment that may be required in February 2024 on a convertible bond. However, we believe VNET has sufficient liquidity to meet its obligations prior to that date,” Fitch said in a statement.

The outlook is stable.

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