BI / exchange
09/06/2010
Irvin Avriano A.
Fitch Ratings assigns Arpeni rating at C level
JAKARTA: PT Fitch Ratings Indonesia assign ratings of a publicly listed sailing company PT Arpeni Ocean Line Tbk US dollar-denominated bonds at level C, related with coupon payment of the debt securities worth US$ 6.21 million last week.
The coupon that been paid off on June 3rd made to coincide with the 30 days grace period that are available from the coupon due on May 3rd.
"It appears that Arpeni was able to pay the missed coupon thanks mostly to the release of some cash collateral provided against loans of the principal shareholder of the company," said Fitch Director of Corporate Ratings Team Buddhika Piyasena today in his research.
In the research, Buddhika saying the payment showed by restricted cash deposits relating to this collateral have fallen from around US$26.3 million at the end of last year to US$ 14 million in June this year.
Given the company missed a coupon payment of its bonds, the rating agency noted the company operational cash generation and a very weak liquidity into question the ability of the company paid the coupon before the deadline time running out.
Arpeni, he said, is in the process of looking for investors to strengthen their capital base and liquidity as a preliminary step to restructure its bond obligations.
A standstill on principal payments on secured bank debt and other debt obligations continues on an informal basis.
Fitch will also review the ratings when Arpeni capitalization structure and credit profile of issuers have more clearly, along with the assessment of the resistance of the operational cash generation.
"Arpeni ranking can benefit from increasing their capital structure and liquidity profile of the additional equity and restructure its credit profile. However, negative rating action based on debt ratings downgrade is still possible. "
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