Moody's cuts Mandra Forestry to Ca

Moody's Investors Service said it downgraded to Ca from Caa1 the corporate family rating of Mandra Forestry Holdings Ltd. and senior unsecured rating of notes issued by Mandra Forestry Finance Ltd. and guaranteed by Mandra.

The outlook is negative.

The downgrade follows Mandra's letter to noteholders indicating that the company does not currently intend to make its May 15 interest payment on the notes until its liquidity situation improves, Moody's said.

This could be a result of the drawdown of the working capital facility in China, the agency said, or the completion of the proposed acquisition and related restructuring. Moody's said it believes the possibility of missing the interest payment is high.

The negative outlook reflects the uncertainty about the outcome of Mandra's debt restructuring process, the agency added.

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