Fitch rates eHi notes BB-

Fitch Ratings said it published a long-term foreign-currency issuer default rating of BB- for eHi Car Service Ltd., along with a senior unsecured rating of BB-.

The outlook is stable.

Fitch also said it assigned an expected rating to BB- to eHi's proposed dollar-denominated senior unsecured notes.

eHi's ratings are supported by the increasing economies of scale it enjoys in a fast-growing Chinese car rental and car-service industry, the agency said.

It is the second-largest company by fleet size in the combined car-rental and car-service industry, Fitch said, and is extending this lead over smaller competitors given its stronger funding position through substantial equity funding.

The ratings are constrained by the company’s small scale, large capital-expenditure needs and the industry's sensitivity to regulatory changes, Fitch said.

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