Moody's downgrades Pan Brothers

Moody's Investors Service said it downgraded the corporate family rating of Pan Brothers Tbk. to B2 from B1.

The agency also downgraded to B2 from B1 the senior unsecured rating on the 2022 notes issued by a wholly owned subsidiary of Pan Brothers, PB International BV, and guaranteed by Pan Brothers and all its subsidiaries.

"The downgrade reflects the heightened refinancing risk associated with Pan Brothers' core $138.5 million revolving credit facility due February 2021, and our assessment that the company's liquidity headroom has narrowed materially," said Stephanie Cheong, a Moody's analyst, in a press release.

"We expect Pan Brothers will have little liquidity buffer to withstand any deterioration in earnings or unexpected stretches in its working capital, and this presents a significant challenge even under its new B2 rating," she added.

The outlook remains negative.

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