Moody’s downgrades Citic

Moody’s Investors Service said it downgraded Citic Resources Holdings Ltd.’s corporate family rating to B1 from Ba3.

The outlook is negative.

The downgrade concludes a review that began in January, Moody’s said.

The downgrades reflect a material deterioration in the company’s credit metrics and cash positions due to low prices for oil, metal and coal, the agency said.

Moody’s said it believes market conditions for all three commodities have moved beyond a cyclical downturn and that the low prices will persist over the medium term.

The severity of the impact on the company is reflected in its 2015 results, including a 79% year-on-year decline in revenue and a gross operating loss of HK$318 million, compared with a prior-year profit of HK$938 million, the agency said.

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