Moody’s rates MNC Investama notes Caa1

Moody's Investors Service said it affirmed the Caa3 corporate family rating of PT MNC Investama Tbk. (BHIT) and the Ca rating on the senior secured rating notes issued by its wholly owned subsidiary, Ottawa Holdings Pte. Ltd., and unconditionally and irrevocably guaranteed by MNC Investama.

The outlook remains negative.

At the same time, the agency assigned a provisional Caa1 rating to the proposed million new senior secured notes due 2021 to be issued by MNC Investama.

Moody’s said the action follows the company’s April 17 announced exchange offer – with respect to Ottawa's $365 million 5 7/8% senior secured notes – of up to $250 million for new senior secured notes due 2021 and a cash tender payment.

"BHIT's proposed exchange is necessary as it does not have sufficient funds on its balance sheet to repay its maturing $365 million senior secured notes due 16 May 2018. If the exchange offer is completed as outlined, it will constitute a distressed exchange, which is an event of default under Moody's definition of default," Moody's vice president and senior credit officer Annalisa DiChiara said in a news release.

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