Moody's downgrades Hilong

Moody's Investors Service said it downgraded Hilong Holding Ltd.'s corporate family and senior unsecured ratings to B2 from B1.

Concurrently, Moody's changed the outlook on Hilong to negative from stable.

"The downgrade and negative outlook reflect Hilong's weakening credit profile amid deeper global economic recession and low oil prices," said Chenyi Lu, a Moody's vice president and senior credit officer, in a press release.

"Our expectations for a more prolonged, reduced demand for oil-related products will weaken Hilong's earnings and financial buffers to an extent that's larger than what we previously assessed," added Lu.

Moody's said it forecasts Hilong's adjusted EBITDA margin will retreat to around 21.5%-22.0% over the next 12-18 months from 23.7% in 2019, because of pricing pressures amid weaker demand.

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