Mar 25, 2012

S&P downgrades Davomas to CC

Standard & Poor's Ratings Services (S&P) lowered the long-term corporate credit rating on Indonesia-based cocoa processor PT Davomas Abadi Tbk (DAVO) to CC from CCC+.
At the same time, S&P lowered the rating on Davomas' senior secured notes maturing in 2014 to CC from CCC+. 
"We subsequently withdrew all the ratings because we no longer have access to the company's management. We had placed the ratings on CreditWatch with negative implications on March 9, 2012. At the time of the rating withdrawal, the outlook was negative."
The rating actions followed our inability to confirm whether Davomas paid a US$3.561 million coupon on its senior secured notes due March 7, 2012. 
"In our view, it is likely that a payment default has occurred. Without access to management, we no longer have visibility over the company's intentions toward bond payments or clarity over its current financial position."

Disclosure: No position at the stock mentioned above.

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