Fitch Ratings has downgraded Indonesia-based Berlian Laju Tanker Tbk's (BLTA) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) to RD (Restricted Default) from 'C'.
The rating on Berlian Tanker's US$400 million senior unsecured notes due 2014, issued by BLT Finance B.V. and guaranteed by BLT, has been affirmed at C with a Recovery Rating of RR5. This is in line with Fitch's 'Recovery Ratings and Notching Criteria for Nonfinancial Corporate Issuers' dated 24 November 2009.
The downgrade comes after BLTA failed to cure its default on the debt instruments listed in the company's announcement on 27 February 2012.
BLTA had announced a debt standstill on 26 January 2012. In its debt standstill announcement the company said that the consolidated entity would 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.
Disclosure: No position at the stock mentioned above.
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