Moody’s trims Hainan State Farms

Moody’s Investors Service said it downgraded the senior unsecured bonds issued by Hainan State Farms International (HK) Co. Ltd. and guaranteed by Hainan State Farms Investment Holding Group Co., Ltd. (Haiken) to Baa3 from Baa2.

Moody's also lowered Haiken’s issuer rating to Baa3 from Baa2, as well as its baseline credit assessment to ba3 from ba2. The outlook remains negative.

"The downgrade and negative outlook reflect Moody's expectation that Haiken's leverage will remain elevated due to the company's high debt balance from its acquisition of HAC and weakened earnings from lower rubber prices. The company could deleverage to a level appropriate for the BCA through earnings growth at its rubber business and realized business synergies with HAC, but this process will take time to fully materialize and entail uncertainties," said Ying Wang, a Moody's vice president and senior analyst, in a press release.

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