Fitch downgrades Pan Brothers

Fitch Ratings said it downgraded PT Pan Brothers Tbk.'s long-term issuer default rating to RD from C. Fitch also affirmed Pan Brothers' $171 million of senior unsecured notes due January 2022, issued by PB International BV, at C with the recovery rating remaining at RR4. Concurrently, the agency lowered Pan Brothers’ national long-term rating to RD(idn) from C(idn).

“The downgrade to RD follows events of default due to non-payment under various banking facilities and the expiry of the standstill agreement period on Feb. 12, 2021. No further extension on the standstill has been unanimously agreed by all the syndicated and bilateral lenders at this stage, despite ongoing discussions,” the agency said in a press release.

The banks may accelerate and enforce the bilateral loans and $138.5 million syndication loan. The non-payment created a default on its $171.1 million bonds maturing in January 2022. “However, the bonds will only be accelerated if at least 25% of the holders choose to do so, which has not happened yet,” Fitch said.

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