Moody’s downgrades Quintis, debt to Caa1

Moody's Investors Service said it downgraded Quintis Ltd.’s (formerly TFS Corp. Ltd.) corporate family rating and senior secured debt rating to Caa1 from B3 and maintained the ratings on review for further downgrade.

"The rating action and review follows the company's response on 6 June to an ASX query that creates significant uncertainty around its future earnings and the take up of investments in its new plantations,” Moody’s senior credit officer Maurice O'Connell said in a news release.

The company withdrew its earnings guidance and trading in its securities remains suspended in light of the sharp deterioration in its operating condition, following the cessation of contracts; resignation of company's former managing director; and a potential corporate transaction that could lead to a change in control, the agency explained.

"Quintis' credit profile remains highly sensitive to the sale of investments in its plantations to Beyond Carbon and Sophisticated Investors, and the delay in clarifying the company's outlook could have a material impact on investor appetite," O'Connell added in the release.

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