Moody's lowers MNC Investama

Moody's Investors Service said it downgraded the corporate family rating of PT MNC Investama Tbk. to Caa3 from Caa2, along with the backed senior secured rating on the notes issued by its wholly owned subsidiary, Ottawa Holdings Pte. Ltd., to Ca from Caa3.

The notes are unconditionally and irrevocably guaranteed by MNC Investama to Ca from Caa3.

The outlook is negative.

The downgrades reflect the significant level of refinancing risk for the company over the next 12 months, Moody's said, and the increasing likelihood of a debt-restructuring exercise being required.

The absence of a definitive refinancing plan to address the upcoming maturities – particularly the notes maturing in May 2018 – exposes the company to material refinancing risk and market risk, the agency said.

The outlook is negative, capturing the likelihood that the risk of default will continue to intensify through May 2018, Moody's added.

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