JAKARTA. Moody's Investor Services has downgraded PT Pan Brothers Tbk (PBRX) to Caa1 with a negative outlook.
Stephanie Cheong, Moody's analyst, explained that the rating and outlook also apply to debt securities issued by PB International B.V., a subsidiary of PBRX. The debt securities will mature in 2022, and are guaranteed by the company and all its subsidiaries.
"The downgrade reflects our material concerns regarding PBRX's ability to pay its debts," Cheong said through an official statement.
Moody's noted that PBRX has lots of debts that will mature within the next 12-15 months. For example, a revolving credit facility worth US$138.5 million which will mature in February 2021, and another one worth US$171 million that will mature in 2022.
On the other hand, PBRX only had cash and cash equivalents of US$40 million at the end of the first semester of 2020. "Even though the company has been trying to restructure its debt, no agreements have been made so far," said Cheong. (KR/AR)