GO
| HSI1 | 25,752.40 | 0.00 | -- |
| HSCEI1 | 8,611.83 | 0.00 | -- |
| Back Zoom + Zoom - Block Traded | |
|
Fitch Lowers MEITUAN-W Outlook to Negative, Affirms BBB+ Rating
2026-04-09 18:03:26 Fitch Ratings revised the outlook on MEITUAN-W (03690.HK)’s Long-Term Issuer Default Rating (IDR) to Negative from Stable, while affirming its BBB+ IDR. Fitch also affirmed the company's senior unsecured rating and the rating on its outstanding US dollar senior notes at BBB+. The outlook revision reflected that, following the opening of a subsidy war in 2Q25, escalated competition in the food delivery sector sparked a slower-than-expected recovery in Meituan’s profitability and FCF. Heavy subsidy spending eroded short-term earnings visibility. Fitch expected Meituan’s FCF not to turn positive until 2027, assuming competition eases meaningfully. The rating affirmation reflected Fitch’s view that Meituan’s recovery trajectory remains intact, albeit delayed. Fitch believed that once competition normalizes, Meituan’s leading market position in China's local-services sector and efficiency edge against its competitors will support its recovery. The rating also took into account the company’s net cash position, which provides flexibility to absorb short-term earnings pressure. ~ AASTOCKS Financial News Website: www.aastocks.com | |