Fitch revises 21Vianet view to negative

Fitch Ratings said it revised the outlook on 21Vianet Group, Inc. to negative from stable and has affirmed the long-term foreign- and local-currency issuer default ratings at B+. Fitch also affirmed the rating on 21Vianet's $300 million 7 7/% senior unsecured notes due 2021 at B+ with a recovery rating of RR4.

“The negative outlook reflects Fitch's expectation that 21Vianet's 2020 FFO adjusted net leverage will worsen to above 4.0x (2019 estimate: 3.2x), the threshold above which we may take negative rating action,” the agency said in a press release.

“Leverage will likely worsen due to lower revenue growth as customers delay data-center leases due to uncertainty relating to the outbreak of Covid-19 and the likely FCF deficit due to the company's large capex plans,” Fitch said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.