S&P rates eHi bonds BB-

Standard & Poor’s said it assigned a BB long-term corporate credit rating to eHi Car Services Ltd.

The agency also assigned a cnBBB- long-term Greater China regional scale rating to the company, along with a BB- long-term issue rating and cnBB+ long-term Greater China regional scale rating to its proposed issue of dollar-denominated senior unsecured bonds.

The outlook is stable.

The ratings reflect the company’s small scale compared with global peers, aggressive capital expenditure through external funding and its operations in a fragmented and highly competitive car-rental and chauffeur-services industry in China, S&P said.

These factors are mitigated by eHi’s relatively good market position in China, improving profitability and cash-flow generation and the country’s favorable long-term growth, the agency said.

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