Moody's lowers Hi-Crush

Moody's Investors Service said it downgraded Hi-Crush Inc.'s corporate family rating to Caa2 from Caa1, probability of default rating to Caa2-PD from Caa1-PD and the rating on the company's senior unsecured notes to Caa3 from Caa2. The speculative grade liquidity rating was maintained at SGL-4. The outlook remains negative.

"With the sudden and severe decline in oil & gas prices, we expect a significant decline in demand and prices of frac sand to negatively impact Hi-Crush's profitability, credit metrics and liquidity," said Emile El Nems, a Moody's vice president and senior analyst, in a press release.

"Hi-Crush's low profitability and elevated leverage make the company highly susceptible to a cyclical downturn in the global economy," Nems said.

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