S&P downgrades Hyva

Standard & Poor’s said it lowered the long-term corporate credit rating on Hyva Global BV to B- from B, along with the rating on its outstanding $375 million senior unsecured notes due March 2016 to B- from B.

The agency also said it lowered the long-term Greater China regional scale rating on Hyva to cnB- from cnBB-.

The outlook is negative.

The downgrades reflect the company’s heightened refinancing and liquidity risk in the absence of a concrete refinancing plan for its dollar-denominated debt obligations, S&P said.

Hyva will need to rely on external financing to meet its $375 million senior unsecured notes due March 2016, given the company’s limited free operating cash flows and cash on hand, the agency said.

Hyva’s liquidity sources are expected to fall materially short of its uses over the next 12 months, S&P added.

The ratings consider the company’s limited product base and high exposure to the volatile and cyclical market for heavy-duty trucks, the agency said.

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