Moody’s downgrades Pan Brothers

Moody’s Investors Service said it downgraded Pan Brothers Tbk.’s corporate family rating to B3 from B2. At the same time, Moody’s downgraded to B3 from B2 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 of its subsidiaries.

“The downgrade to B3 reflects the continued uncertainty with respect to the refinancing of Pan Brothers’ upcoming debt maturities, including its fully drawn revolving credit facility,” said Stephanie Cheong, Moody’s lead analyst on Pan Brothers, in a press release.

“While the company is currently negotiating refinancing arrangements for its revolving credit facility, a firm agreement is not yet in place, and so the timing of the execution of its plans remains uncertain,” said Cheong. “Even assuming the company refinances the revolving credit facility, refinancing risk will remain high given the bond maturity in January 2022.”

The outlook remains negative.

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