Fitch: Ranhill outlook negative

Fitch Ratings said it affirmed Ranhill Bhd.'s long-term foreign-currency issuer default rating at B, affirmed Ranhill Ltd.'s $220 million senior unsecured notes due 2011 at B-/RR5 and revised the outlook to negative from stable.

The outlook revision reflects refinancing risks associated with the notes, the agency said, noting that Ranhill currently has no firm plans to address this debt maturity. In addition, Ranhill's challenges include its limited unencumbered asset base and restricted access to dollar bond markets, according to Fitch.

Ranhill's issuer default rating reflects the volatile cash flows and risks associated with fixed-price engineering and construction contracts, which account for a majority of its revenues, and its still-weak liquidity, the agency said.

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