Moody’s downgrades Pan Brothers

Moody’s Investors Service said it downgraded PT Pan Brothers Tbk.’s corporate family rating to Ca from Caa1. Simultaneously, Moody’s downgraded to Ca from Caa1 the senior unsecured rating on the 2022 notes issued by wholly owned subsidiary PB International BV and guaranteed by Pan Brothers and its subsidiaries.

“The downgrade reflects our expectations of a high likelihood of imminent default, and the increasing risk of a debt restructuring as the Jan. 27 maturity of its $138.5 million revolving credit facility draws closer,” said Stephanie Cheong, Moody’s lead analyst for Pan Brothers, in the release.

“The negative outlook reflects the additional uncertainty around the recovery rate for its $171 million bond due 2022 in case of a default,” added Cheong.

The outlook remains negative.

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