S&P lowers eHi view to negative

S&P said it revised the outlook on eHi Car Services Ltd. to negative from stable.

The agency also said it affirmed the company's BB- long-term issuer credit rating and BB- long-term issue rating on its senior unsecured notes.

The negative outlook reflects an expectation that the company is likely to face more challenges in liquidity management over the next 12 months, S&P explained.

eHi's liquidity buffer is narrowing with reducing covenant headroom as the company expands its fleet, the agency said.

S&P also said it expects eHi to continue to have significant bullet debt maturities even though near-term refinancing risk is absent.

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