S&P lowers GITI Tire

Standard & Poor's said it lowered the corporate credit rating on GITI Tire Pte. Ltd. to B- from B, along with the Greater China scale credit rating on the company to cnB- from cnBB-.

The agency also said it removed the ratings from CreditWatch, where they were placed with negative implications in June.

The outlook is negative.

The agency said it lowered the ratings because it expects the company's liquidity to remain strained over the next 12 months.

S&P also said it believes that the covenant headroom is thin under a club loan that GITI took out to refinance its $200 million senior secured notes.

The company's working capital requirements are expected to remain high over the next six to 12 months, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.