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Prospect News home > News index > List of issuers H > Headlines for Hidili Industry International Development Ltd. > News item |
S&P downgrades Hidili Industry
Standard & Poor's said it lowered its long-term corporate credit rating on Hidili Industry International Development Ltd. to CCC from CCC+.
The outlook is negative.
The agency also lowered the rating on the company's senior unsecured notes to CCC- from CCC. Simultaneously, it lowered the long-term Greater China regional scale rating on Hidili to cnCCC from cnCCC+, and that on the notes to cnCCC- from cnCCC.
S&P said the downgrades reflect its view of a heightened refinancing risk as the company has RMB 5.3 billion in short-term debt due within 2014, compared with only RMB 1.2 billion in cash as of the end of 2013.
"As the operating environment remains challenging and the domestic funding environment is still tight, we believe the financing channel available to Hidili is limited," S&P credit analyst Jian Cheng said in a news release.
"Unless the coal business market and the financial environment significantly improve, we assess that Hidili has a one-in-two likelihood of default within the next 12 months."
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