Fitch downgrades Zoomlion, debt to B-

Fitch Ratings said it downgraded Zoomlion Heavy Industry Science and Technology Co. Ltd.'s long-term issuer default rating to B- from B+.

The outlook is stable.

The agency also downgraded the company's senior unsecured rating to B- from B+, with a recovery rating of RR4.

Bonds issued by Zoomlion H.K. SPV Co. Ltd. were also downgraded to B- from B+, with a recovery rating of RR4.

Fitch said the two-notch downgrade reflects the rapid deterioration in Zoomlion's financial profile, with sustained high leverage and poor coverage ratios. The agency does not expect Zoomlion to deleverage quickly in the medium-term.

The stable outlook reflects the resources and access that Zoomlion still has that Fitch deems to be sufficient to sustain its liquidity.

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