Tuesday, May 12, 2009

Moody's downgrades Davomas to Ca

Moody's Investors Service has today downgraded to Ca from Caa1 the corporate family rating of PT Davomas Abadi Tbk ("Davomas") and senior secured bond rating of Davomas International Finance Company Pte Ltd, which is guaranteed by Davomas. The outlook for the ratings is negative.
"The rating action follows Davomas' announcement that it has failed tomake the interest payment for its UD$238m senior bond due on May 8, and that the company is in the process of selecting professional parties for debt restructuring," says Wonnie Chu, a Moody's Analyst.
"The downgrade to Ca therefore reflects the expected low recovery ratefor Davomas' bond holders," she adds.

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