S&P rates TFS, bond B

Standard & Poor's said it assigned a B corporate credit rating to TFS Corp. Ltd., along with a B rating and recovery rating of 3 to its proposed $175 million bond issue.

The 3 recovery rating indicates 50% to 70% recovery in a default.

The outlook is stable.

The ratings reflect the company's exposure to regulatory risk and its dependency on potentially volatile investment sales and fees for cash flow, S&P said.

Also underpinning the rating is TFS's limited geographic and business unit diversity, plantations that are yet to reach harvest and the company's weak liquidity following repayment of its bank facility, the agency said.

Partly offsetting these negative rating factors is the scarcity of global Indian sandalwood trees, S&P said.

© 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.