TRIS Downgrades ITD's Issue Rating to "C"
Thai Rating and Information Services Co., Ltd. (TRIS) announced Thursday 5 October 2000 that it has lowered the rating of Italian-Thai Development PLC's (ITD) Bt3,500 million senior debentures due 2005 to "C" from "BBB-".
TRIS reported that the downgraded rating reflects the very high possibility that ITD will request its debentureholders to adjust the obligations to be less favorable than the current terms and conditions. On 29 September 2000, the company management met with debentureholders and informed them that it was not able to make interest and principal payments due in September 2000 to some lenders and is now negotiating with its lenders on a new restructuring package. On 29 September 2000 the company also informed the debentureholders' representative that it will not be able to make interest payment on its Bt3,500 million debentures due on 11 October 2000. TRIS said that it will monitor this situation closely and take appropriate rating action accordingly.
TRIS also pointed out that ITD's lower than expected internal cash flow as well as its failure to dispose of non-core assets as planned has caused the company serious liquidity problems.
This rating action follows TRIS's CreditAlert with negative implication for ITD's senior debentures announced on 29 September 2000. Italian-Thai Development PLC (ITD) Issue Rating ITD#1: Bt3,500 million senior debentures due 2005 Downgraded to C from BBB-
Note: "CreditUpdate" reviews ratings of companies or debt issues that have already been rated by TRIS. The CreditUpdate occurs when new debt instruments are issued or if significant events have taken place that may impact a company's current ratings or when current ratings are cancelled. The CreditUpdate announces whether a rating has been "upgraded," "downgraded," "affirmed" or "cancelled." The update includes information to supplement the previously published ratings.
CreditUpdates are part of TRIS's monitoring process. TRIS monitors every rating it assigns until either the debt instrument matures or the rating contract ends. To keep the public informed of changing situations, TRIS periodically issues announcements about the credit ratings it monitors.