Fitch lowers Modernland

Fitch Ratings said it downgraded the issuer default rating for PT Modernland Realty Tbk. to C from CC. Fitch also downgraded the rating on the $150 million of notes due 2021 and $240 million of notes due 2024 issued by its wholly owned subsidiaries, JGC Ventures Pte. Ltd. and Modernland Overseas Pte Ltd., respectively, and guaranteed by Modernland, to C from CC. The recovery rating on the notes remains at RR4.

“The downgrade follows confirmation that the company did not pay a coupon due Aug. 31, 2020, on the 2021 notes and has entered into a 30-day grace period,” Fitch said in a press release.

Fitch said it estimates the cash-strapped company won’t be able to make the coupon payment before the grace period expires without outside funding.

If Modernland is unable to make the payment, the agency said it would consider dropping the ratings on Modernland and the bonds to restricted default.

© 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.