Moody’s trims Tianqi Lithium

Moody’s Investors Service said it downgraded Tianqi Lithium Corp.’s corporate family rating to Caa2 from Caa1 and probability of default rating to Caa3 from Caa2.

Tianqi Lithium reported it signed a loan extension agreement with its banks on Nov. 30 for a $1.9 billion term loan facility due Nov. 29, extending the maturity to the earlier of Dec. 28, or the effective date of an amended loan agreement. Moody’s said it considers this event a missed payment default.

“The downgrade reflects our concern that the absence of a satisfactory resolution on the term loan restructuring could lower recovery prospects for creditors,” said Gerwin Ho, a Moody’s vice president and senior credit officer, in a press release. “The current situation could also lead to an acceleration of payments relating to the company’s other obligations and impact its operations.”

The outlook remains negative.

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