Fitch again downgrades Serba Dinamik to “RD” for untreated payment default

KUALA LUMPUR (December 14): Fitch Ratings further downgraded the long-term default rating of Malaysia-based energy services provider Serba Dinamik Holdings Bhd to “RD” (restricted default) from “C”.

In a statement issued on Monday, December 13, Fitch said the downgrade follows the expiration of the 30-day grace period after the non-payment of the coupon on the group’s unsecured senior sukuk of $ 222 million (around $ 939 million). , RM35 million) due in 2022.

He said potential cross-acceleration clauses in his other debts could be triggered by the non-payment of the 2022 tickets.

“The ‘RD’ rating indicates an issuer which, in Fitch’s opinion, has experienced an unresolved payment default, but has not filed for bankruptcy and has not ceased operations,” he said. -he declares.

At the same time, Fitch confirmed the ratings of the May 2022 sukuk issued by SD International Sukuk Ltd and the March 2025 sukuk issued by SD International Sukuk II Ltd to “C”, with the recovery rating remaining at “RR4”.

The credit rating came after Fitch downgraded the issuer’s long-term default rating from Serba Dinamik to “C” from “CCC-” on November 12 after Serba Dinamik defaulted on interest payments 2022 senior unsecured sukuk and entered within the 30 day grace period. period.

On Monday, Serba Dinamik said he had not yet received any notices of default in response to his overdue $ 222 million sukuk, in response to a question from Bursa Securities about reports that the group did not have paid the $ 7 million senior Islamic bond. payment of the semi-annual coupon at the end of the 30-day grace period which ended on December 9.

“Please note that Serba Dinamik Holdings Bhd and its group of companies have not yet received a notice of default regarding the 222 million sukuk overdue. The group will update itself from time to time, in the event of further development.” Serba Dinamik said in his then dossier.

Besides Fitch, Malaysian Rating Corp Bhd and S&P Global Ratings also downgraded Serba Dinamik’s credit rating, citing non-payment of the coupon.

Trading in Serba Dinamik shares has been suspended since October 22, after failing to disclose the findings of a special independent review undertaken by Ernst & Young Consulting Sdn Bhd (EY Consulting) into an audit issue reported by its external auditor KPMG at the time. May on some allegedly dubious transactions worth over RM 4.5 billion.

Since then, the group, which is in a legal dispute with Bursa Securities and EY Consulting, as well as with KPMG over the audit issue, has also failed to submit its annual report for the year ended 30 June 2021, despite being granted a one-month extension until November 30 to submit the report, along with its annual audited financial statements, as well as the reports of the auditors and directors.

The group’s shares were last settled at 35 sen, giving it a market cap of RM 1.3 billion.

Also read:
Serba Dinamik says he has yet to receive notice of default on his $ 222 million sukuk
Serba Dinamik plans to have its own satellite in three and a half years – CEO


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Elaine R. Knight