Moody's cuts Takefuji to Caa1

Moody's Investors Service said it downgraded to Caa1 from B2 the long-term issuer rating and senior unsecured debt ratings of Takefuji Corp.

The outlook was changed to stable from negative.

This downgrade is in response to news that Takefuji is commencing an exchange offer to holders of its euro-yen convertible bonds of ¥70 billion. The agency said it regards the exchange offer as a distressed exchange, as it results in a diminished financial obligation for the company.

The downgrades also reflect Moody's belief that the offer will cause economic losses to the selected creditors, reflecting the severe funding problem due to the company's unique funding profile and the severe challenges of maintaining its deteriorating franchise under persistently severe operating environment.

© 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.