Moody’s downgrades MNC Investama

Moody's Investors Service said it downgraded the corporate family rating of MNC Investama Tbk. to Caa1 from B3.

The agency also said it downgraded the bond rating on the $365 million senior secured notes issued by wholly owned subsidiary Ottawa Holdings Pte. Ltd. to Caa2 from Caa1.

The ratings remain on review for further downgrade.

Through its stake in Global Mediacom, MNC Investama has a significant stake in PT MNC Sky Vision Tbk., a media operating company.

The downgrades reflect the lack of clarity around the funding arrangement for the first amortization payment under the $243 million term loan for Sky Vision, Moody’s said.

The agency said it understands that Sky Vision has been in discussions with its lenders to secure refinancing for its maturing term loan, but the company has yet to announce a formal deal.

The review will continue to focus on the refinancing options for this loan, Moody’s said.

The failure to satisfy the 25% amortization payment due in September and provide a refinancing plan for the balance of the loan could lead to a multiple-notch downgrade, the agency added.

Significant refinancing risks will persist over the next 18 months, Moody’s said.

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