Fitch downgrades Hyva

Fitch Ratings said it downgraded Hyva Global BV's dollar-denominated senior secured notes due 2016 to B+ from BB-, downgraded subsidiary Hyva Holding BV's long-term foreign-currency issuer default and senior debt ratings to B+ from BB- and simultaneously assigned B+ long-term foreign-currency issuer default and senior debt ratings to Hyva Global.

The outlook on the issuer default ratings is stable.

Fitch said the downgrades reflect deterioration in Hyva's credit profile and business volatility highlighted by the recent business slowdown in China. Hydraulic shipments in China slowed sharply in the third quarter of 2011 as the market for heavy-duty trucks was negatively affected by tightening liquidity and other measures enacted by the Chinese government to curb rising inflation, the agency said, and as a result, revenue from China, which accounted for nearly 40% of total revenue in 2010, more than halved compared to the first and second quarters.

On the other hand, the agency said revenue in other regions, excluding Europe, continued to show growth.

The stable outlook is supported by the company's leading market position in hydraulic front-end cylinders globally, geographical diversification and adequate liquidity, Fitch said.

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