Standard & Poor's Ratings Services said that it had lowered its long-term corporate credit rating on Indonesia-based PT Arpeni Pratama Ocean Line Tbk to D from SD.
At the same time, S&P lowered the issue rating on the outstanding US$140.85 million senior secured notes due May 3, 2010, issued by Arpeni Pratama Ocean Line Investment B.V. and guaranteed by Arpeni, to D from C.
The rating agency downgraded Arpeni because the company has not paid the coupon that was due on Nov. 3, 2010, even though the 30-day grace period has passed.
The previous two coupon payments were made within the grace period. We had earlier lowered the ratings on Arpeni to SD from CC because the company deferred the principal payments on some of its loans.
Arpeni's liquidity has been increasingly stressed since 2009," said Standard & Poor's credit analyst Manuel Guerena, last week.
"The company funded its growing working capital requirements using short-term loans, despite its already high indebtedness. The situation was compounded by a decline in operating margin."
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