TRIS Rating downgrades the company rating on Asia Capital Group PLC (ACAP) to “C” from “B”, with a “negative” outlook maintained. The rating downgrade is based on our view that it is highly unlikely that the company will be able to redeem its ACAP202A debenture due on 7 February 2020, with principal total amount of Bt395.30 million.
The rating action follows the company’s notification, dated 4 February 2020, sent to the Stock Exchange of Thailand, regarding the convening of the Debenture Holders’ Meeting of ACAP202A to 13 February 2020 due to incomplete quorum. The purpose of the meeting is to approve its proposal to extend the due date of ACAP202A debenture by 366 days and to raise coupon rate by 150bp to 7.50%.
In the notification, the company indicates that it intends to make payment only for the interest on ACAP202A, but not for the principal. In TRIS Rating’s view, nonpayment of either principal or interest or both on the day the payments are due constitutes a default.
TRIS Rating expects to downgrade the company rating further to “D” if ACAP misses the payment on principal or interest on the due date.
Asia Capital Group PLC (ACAP)
Company Rating: C
Rating Outlook: Negative
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