Moody's cuts Davomas Abadi

Moody's Investors Service said it downgraded to Caa1 from B2 the corporate family rating of PT Davomas Abadi Tbk and senior secured bond rating of Davomas International Finance Co. Pte Ltd., which is guaranteed by Davomas. This action concludes the review for possible downgrade that began in March.

The outlook is negative.

The downgrade follows Davomas' failure to address its non-compliance with its bond indenture, Moody's said. Its cash-on-hand also has declined significantly against the backdrop of a rapidly deteriorating operating environment, the agency said.

The negative outlook reflects the operating challenges faced by Davomas, including slowing demand and the tough pricing demanded by customers, Moody's added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.