S&P revises Meituan outlook to positive

S&P said it revised its outlook for Meituan to positive from stable and affirmed the BBB ratings on the company and its senior unsecured notes.

The agency said its base case assumes adjusted EBITDA will increase more than 40% to RMB 36 billion in 2024, helped by lower losses at Meituan Select, the community group buying business.

“The positive outlook considers that if Meituan can quickly narrow the losses at Meituan Select and lower incentives at in-store as a percentage of revenue, EBITDA could rise faster than our forecasts over the next 12-24 months. We expect food delivery to remain a key growth driver for core local commerce,” S&P said in a statement.

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