Moody’s lowers Honghua, debt to B2

Moody's Investors Service said it downgraded Honghua Group Ltd.’s corporate family and senior unsecured debt ratings to B2 from B1.

The outlook remains negative.

"The downgrade reflects our concern that Honghua's operations and credit metrics will be negatively affected in the next 12-18 months by the sustained low oil prices," Moody's vice president and senior analyst Kaven Tsang said in a news release.

The low crude oil prices, which Moody's expects to persist over the next two years, will reduce upstream oil and gas companies' capital spending and, accordingly, their demand for new land and offshore rigs such as those produced by Honghua, the agency said.

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