Rating on Daya Guna's $225m notes downgraded<\/p>\n
JAKARTA (AFP): Moody's Investors' Service on Friday downgraded
\nUS$225 million of guaranteed notes issued by Indonesian fishing
\ngiant PT Daya Guna Samudra (DGS), citing crippling disruptions to
\nits operations from the religious conflict in the Maluku islands.<\/p>\n
Moody's said the downgrade of the notes due this year from
\nCaa1 to Ca, was accompanied by the withdrawal of its rating.<\/p>\n
\"The rating agency believes that it will be able to obtain
\nsufficient information from the issuer to properly and timely
\nmonitor the rating in the future,\" Moody's said in a statement
\nreceived here.<\/p>\n
The downgrade, it said, reflected \"the prolonged damage to
\nDGS' operations caused by the ongoing ethnic and religious
\nconflict close to its main fishing base in Eastern Indonesia,\"
\nMoody's said in a statement received here.<\/p>\n
\"Further, DGS has stated that it is unable to generate
\nsufficient cash flow to fund its current level of operations and
\nits debt repayment obligations.\"<\/p>\n
The agency said it was uncertain whether the company's efforts
\nto raise cash by selling off fishing boats would result in its
\nbeing able to meet the December coupon payment of the guaranteed
\nnotes.<\/p>\n
\"The downgrade also reflects the apparent uncertainty in
\nresolving creditors' claims under Indonesian law should DGS
\ndefault,\" it added.<\/p>\n
DGS, it said, had at the latest report in June 2000, been able
\nto operate only 30 percent of its fleet, mainly because of the
\nlack of experienced crews willing to operate in the area, where
\nChristian-Muslim violence has raged for almost two years.<\/p>\n
DGS, now delisted from the Jakarta Stock Exchange, was also in
\npreliminary discussions with the Indonesian Bank Restructuring
\nAgency over default on a short-term bank loan \"which resulted in
\nsignificant bad debt provisions, accounting for over 40 percent
\nof its 1999 sales, Moody's said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/rating-on-daya-gunas-225m-notes-downgraded-1447893297",
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