Moody's lowers Quintis view to negative

Moody's Investors Service said it revised the outlook to negative from stable on Quintis Ltd., formerly known as TFS Corp. Ltd.

The corporate family and senior secured debt ratings also were affirmed at B2.

The outlook revision reflects the uncertainty in the strategic direction of the company, given the resignation of the managing director, who was also a founder of the company, Moody's explained.

The appointment of new management also creates uncertainty around the company's future business strategy and financial policy, the agency said.

The resignation of the managing director could impact the company's ability to execute its strategy of increasing revenue from the sale of oil and heartwood, as well as attracting institutional investment, Moody's added.

This, together with the cessation of shipment under the supply contract to its major Chinese customer that results in a loss of about $22.5 million per year, could lead to a weakening of Quintis' credit metrics weaken over the next 12 to 18 months, the agency said.

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