Fitch trims Meituan

Fitch Ratings said it downgraded Meituan's long-term foreign-currency issuer default rating to BBB- from BBB and the senior unsecured rating and ratings on its bonds to BBB- from BBB.

“The downgrade reflects the greater regulatory uncertainty facing Meituan, which increases volatility in its profitability and investments. Fitch expects regulations enforcing delivery-rider benefits to pressure the operational efficiency and margin of Meituan's food-delivery operation,” the agency said in a press release.

Fitch said it believes the labor-related regulations could hurt the food-delivery business's operations and profitability, but the degree and timing are uncertain.

The outlook remains negative.

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