Moody’s cuts Imperial Pacific, rates bonds B2

Moody's Investors Service said it downgraded Imperial Pacific International Holdings Ltd.'s corporate family rating to B3 from B2.

At the same time, the agency assigned a B2 senior secured rating to the proposed dollar-denominated bonds to be issued by Imperial Pacific International (CNMI), LLC and guaranteed by Imperial Pacific.

The outlook is negative. This concludes the rating review initiated on Nov. 28.

Proceeds from the proposed bond will be used to finance the development of phase I of the Saipan project. The project is also referred to as the Grand Mariana, and will contain a casino and a hotel with 365 rooms.

"The downgrade of Imperial Pacific's CFR reflects the increased uncertainty over the company's ability to secure sufficient funding to complete its Grand Marina project, in view of the delay in the opening of the casino to March 2017," Moody's vice president and senior credit officer Kaven Tsang said in a news release.

"A successful issuance of the proposed bonds will satisfy only part of Imperial Pacific's funding needs to complete the entire Grand Mariana project."

© 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.