Fitch Ratings has today downgraded Indonesia's PT Central Proteinaprima Tbk (CP Prima) long-term foreign currency Issuer Default Rating (IDR) to restricted default (RD) from C.
RD ratings indicate that an issuer has experienced an uncured payment default on a material financial obligation but has otherwise not entered into bankruptcy filings, administration, receivership, liquidation or other formal winding-up procedures.
Fitch has affirmed the C' rating of the US$325m senior unsecured notes due in 2012, issued by Blue Ocean Resources Pte Ltd (Blue Ocean) and guaranteed by CP Prima and its subsidiaries, reflecting a recovery rating of RR4. The ratings have been removed from Rating Watch Negative.
The rating actions follow CP Prima failure to pay the USD17.875 million semi-annual coupon on the notes on 27 January 2010, when a 30-day grace period for the coupon payment ended. The company continues to face tight liquidity primarily on the back of a virus contamination in its shrimp ponds.
CP Prima is currently in the process of executing a six-month standstill agreement with the noteholders. CP Prima IDR will be upgraded to C once the standstill agreement becomes effective.
The rating actions follow CP Prima failure to pay the USD17.875 million semi-annual coupon on the notes on 27 January 2010, when a 30-day grace period for the coupon payment ended. The company continues to face tight liquidity primarily on the back of a virus contamination in its shrimp ponds.
CP Prima is currently in the process of executing a six-month standstill agreement with the noteholders. CP Prima IDR will be upgraded to C once the standstill agreement becomes effective.
CP Prima and bond holders agree not to speed up the maturity of outstanding bonds worth US$325 million n the standstill period in the next 6 months.
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