Moody’s reviews VNET for upgrade

Moody's Investors Service said it placed VNET Group, Inc.'s Caa1 corporate family rating on review for upgrade. Previously, the outlook was negative.

On Wednesday, the company announced it plans to finance the repurchase of its $600 million in convertible senior notes, which will become puttable in February.

"The review of VNET's rating for upgrade reflects our view that its liquidity position has been enhanced by proceeds from Shandong Hi-Speed Holdings Group Ltd.'s investment agreement and a new offshore credit facility. Combined with its cash holding, the company should have sufficient funds to repurchase its $600 million convertible senior notes," said Shawn Xiong, a Moody's vice president and senior analyst, in a press release.

Moody's said its review will consider VNET's completion of the note repurchase, its liquidity profile, capital structure, and financial and operating strategy going forward.

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