Fitch assigns Hilong notes B

Fitch Ratings said it assigned Hilong Holding Ltd.'s proposed 9¾% senior secured notes due 2022 an expected rating of B with a recovery rating of RR4 and placed the expected rating on rating watch negative.

“The proposed notes are rated at the same level as Hilong's senior unsecured rating because they will constitute its direct and senior unsecured obligations,” Fitch said in a press release.

Also, Fitch placed Hilong’s B rating and senior unsecured rating of B with a recovery rating of RR4 on RWN.

“The RWN reflects the uncertainty about the company's ability to access its onshore cash to redeem its $165.11 million 7¼% senior unsecured notes due June 2020. An announced exchange offer and proposed issuance could be sufficient to refinance the June maturity, but is contingent on adequate acceptance,” Fitch said in a press release.

The agency said it doesn’t consider the exchange distressed because it doesn’t materially reduce the terms compared with the original terms and Hilong has the cash to redeem the bonds due in June.

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