"The downgrade reflects the greater regulatory uncertainty facing Meituan," Fitch said in a statement explaining the downgrade.

Meituan, China's eighth largest company by market value, has faced regulatory heat as authorities crack down on the country's sprawling platform economy.

Fitch said factors that could lead to another downgrade included further government, regulatory or legal intervention that hurt its operating and business model, sustained EBITDA losses beyond this year as well further rises in debt.

(Reporting by Marc Jones, editing by Karin Strohecker)