Moody's cuts Hidili bond to B3

Moody's Investors Service said it confirmed Hidili Industrial International Development Ltd.'s B2 corporate family rating, after the company said it entered into agreement to raise RMB 1.5 billion to meet its refinancing needs.

Moody's also downgraded Hidili's senior unsecured bond rating to B3 from B2 due to increased risks of subordination.

The outlook is negative.

"Such refinancing initiatives help alleviate concerns over Hidili's near-term liquidity risk, which was the key reason for Moody's ratings review," Moody's vice president and the lead analyst for Hidili Alan Gao said in a news release.

"Moreover, Hidili had unrestricted cash balance of RMB 527 million as of June 30 and it has demonstrated a track record of accessing the domestic bank market for working capital financing," Gao added in the release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.