Fitch downgrades Hilong to B

Fitch Ratings said it downgraded Hilong Holding Ltd.'s long-term issuer default rating and senior unsecured rating to B from B+. The recovery rating remains at RR4. Fitch removed the ratings from rating watch negative.

“The downgrade reflects Fitch's expectations of the impact on Hilong's earnings and cash flows from the steep decline in oil prices and that the downturn may be deep and lengthy. Fitch believes that Hilong's credit metrics will be stretched under this scenario,” the agency said in a press release.

Fitch said it expects the company to use its readily available cash and undrawn credit facilities to redeem its $165 million of 7¼% senior unsecured notes due in June, depleting near-term liquidity.

The negative outlook reflects the uncertainty on Hilong’s ability to replenish its liquidity, 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.