Honghua 2019 Bonds Down 1.4pts After Results, Lowest Since Jan.

2015-08-20 01:54:42.620 GMT
By Tanya Angerer

(Bloomberg) -- Honghua’s 7.45% 2019 notes fell 1.4pts to 51.2, lowest since Jan. 27 at 9:27am in HK, according to Bloomberg prices.

* Revenues at the world’s largest land rig maker dropped 41.9% to CNY2.2b vs CNY3.8b in 1H 2014; operating profits dropped 94.8% to CNY19b vs CNY365.7m in 1H 2014, according to a co. release yday

* “We view the significant deterioration of the credit metrics since Q4/14 as a big negative,” says Mervyn Teo at Lucror Analytics Pte. “There may be a possibility for distressed credit by end-2015 and further downgrades if the underperformance persists.”

* Moody’s placed Honghua’s B3 rating on review for downgrade on Jul 8, it said in a statement