KUALA LUMPUR (Nov 12): Fitch Ratings has downgraded energy-service provider Serba Dinamik Holdings Bhd's long-term issuer default rating to "C" from "CCC-".
In a statement on Friday (Nov 12), Fitch said it has also downgraded the rating on the senior unsecured sukuk due May 2022 and March 2025 to "C", from "CCC-", with the Recovery Rating remaining at "RR4".
The rating agency said the downgrade follows the confirmation from Serba Dinamik that it had missed the interest payment on its 2022 senior unsecured sukuk and entered a 30-day grace period.
It said failure to make the payment after the grace period will constitute an event of default.
Fitch said the key rating driver was non-payment of bond interest: Serba Dinamik was not able to meet its semi-annual coupon payment due on Nov 9, 2021 for its US dollar sukuk maturing in May 2022 and the company has entered a 30-day grace period.
It added Serba Dinamik said that it planned to pay the coupon within the grace period with cash collected from customers.