S&P cuts Serba Dinamik

S&P said it lowered its rating on Serba Dinamik Holdings Bhd. and the foreign-currency issue rating on the company’s guaranteed sukuks to CCC from B-. The agency also removed the ratings from CreditWatch, where they were placed with negative implications on June 1.

“We lowered the ratings on Malaysia-based Serba Dinamik to reflect the company's sizable debt maturities of about MYR 1.7 billion within the next nine months, and our view that the persistent challenges surrounding a special independent review and statutory audit will continue to impede Serba Dinamik's access to external funding,” S&P said in a press release.

“Market confidence in Serba Dinamik has been shaken, with both its stock and bond prices down about 75% and 60%-70%, respectively. We consider funding from the capital and equity markets to be unlikely in the near term because it will take the company some time to restore market confidence after the resolution of the special independent review and audit,” the agency said.

The outlook is negative.

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