Fitch ups Honghua, notes to B-

Fitch Ratings said it upgraded Honghua Group Ltd.’s long-term foreign-currency issuer default rating to B- from CCC.

The outlook is stable.

The agency also upgraded the company’s senior unsecured rating and the rating on its $200 million 7.45% senior unsecured notes due 2019 to B- from CCC; the recovery rating remains at RR4.

The upgrade resolves the positive watch on the ratings, which was in place since Dec. 18, 2017.

“The upgrade reflects Honghua's improved business performance and Fitch's expectation that Honghua's revenue and profitability will continue to recover amid rebound in oil prices,” the agency said in a news release.

“Honghua's rating is also supported by the improved liquidity and funding access after China Aerospace Science and Industry Corporation (CASIC) became the company's largest shareholder.”

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