KUALA LUMPUR: Standard & Poor's Ratings Services has placed its 'B' long-term corporate credit rating of RANHILL BHD [] on CreditWatch with negative implications.
The ratings agency said on Thursday, Dec 30, it also placed its 'B-' issue rating on US$220 million 12.5% senior unsecured notes due October 2011 issued by Ranhill (L) Ltd on CreditWatch with negative implications. Ranhill guarantees the notes.
'We placed the ratings on CreditWatch because Ranhill's liquidity has become constrained, in our opinion.
'We understand that the company has deferred payments to certain creditors in order to manage its working capital needs. This action could also affect Ranhill's ability to meet its sizable debt maturities in the next 12 months, including the US$220 million notes due October 2011,' it said.
S&P credit analyst Andrew Wong said the rating agency aims to resolve the CreditWatch action following its discussion with Ranhill on the measures it is taking to meet short-term liabilities without disrupting its normal operations.
"We will assess the company's near-term liquidity position, including its progress toward refinancing its US$220 million guaranteed notes and completing phase two of its Senai Desaru Expressway project," he said.
The ratings agency said on Thursday, Dec 30, it also placed its 'B-' issue rating on US$220 million 12.5% senior unsecured notes due October 2011 issued by Ranhill (L) Ltd on CreditWatch with negative implications. Ranhill guarantees the notes.
'We placed the ratings on CreditWatch because Ranhill's liquidity has become constrained, in our opinion.
'We understand that the company has deferred payments to certain creditors in order to manage its working capital needs. This action could also affect Ranhill's ability to meet its sizable debt maturities in the next 12 months, including the US$220 million notes due October 2011,' it said.
S&P credit analyst Andrew Wong said the rating agency aims to resolve the CreditWatch action following its discussion with Ranhill on the measures it is taking to meet short-term liabilities without disrupting its normal operations.
"We will assess the company's near-term liquidity position, including its progress toward refinancing its US$220 million guaranteed notes and completing phase two of its Senai Desaru Expressway project," he said.
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