Moody's prunes Hilong

Moody's Ratings said it downgraded Hilong Holding Ltd.'s corporate family rating to Caa2 from Caa1 and maintained the negative outlook.

"The downgrade and negative outlook reflect Hilong's deteriorated liquidity and heightened refinancing risks. The company's inability to publish its 2023 financial results by the end of March 2024 and the subsequent suspension of trading of its shares will further constrain its ability to access funding," said Chenyi Lu, a Moody's Ratings vice president and senior credit officer, in a press release.

The agency said it projects Hilong’s cash and operating cash flow over the next 12-18 months will not cover its short-term debt. This debt includes its dollar-denominated bonds due in November.

Hilong is assessing and discussing with its creditors a plan to extend its outstanding $314 million of senior notes due on Nov. 18.

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