S&P slashes Sawmit to SD

S&P said it downgraded PT Sawit Sumbermas Sarana Tbk. (SSMS) to SD from CC.

“We lowered our ratings after SSMS completed the below-par cash tender for about 85% of its guaranteed senior unsecured notes due in January 2023, the agency said in a press release.

S&P said it considers the tender a distressed exchange and a default. “This is given our view of: (1) unsecured noteholders receiving less than what was originally promised because the cash tender of 90 cents is below par and for $260 million of the outstanding $300 million notes; and (2) the tender offer comes just a little over two quarters from the maturity of the notes.”

The agency said it aims to review SSMS’ issuer rating once the new capital structure has been finalized.

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