Fitch Ratings has downgraded Berlian Laju Tanker Tbk's (BLT) Long-Term Foreign-and Local-Currency Issuer Default Ratings (IDRs) to C from CCC.
The rating on BLT's US$400 million senior unsecured notes due 2014, issued by BLT Finance B.V. and guaranteed by BLT, has also been lowered to C from CC with an associated recovery rating of RR5. The rating watch negative (RWN) assigned to the ratings on Jan 25 2012 has been removed.
The downward revision in ratings follows BLT's announcement of a debt standstill. In its debt standstill announcement dated January 27, 2012, the company stated that the consolidated entity will temporarily cease making repayments on its loans, bonds, and lease facilities excluding repayments on the debt and leases assumed by PT Buana Listya Tama Tbk. The BLT Group's obligations to its suppliers and trade creditors will not be covered by the bebt standstill.
The company also reported that it plans to continue with normal business and operations.
The ratings will be further lowered to RD if the coupon and/ principal repayments are not made within the contractual cure period. The cure period refers to a provision in a contract allowing a defaulting party to fix the cause of a default.
Disclosure: No position at the stock mentioned above.
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