Friday, August 27, 2010
PT Berlian Laju
PT Berlian Laju: S&P downgrades BLT’s long term corporate credit rating to B-, places on CreditWatch negative. Senior unsecured debt ratings reduced to CCC from CCC+. Expects freight rates to soften in 2H10, leading to BLT’s breach of some debt covenants, especially the EBITDA-related ones. Also cites company’s already high leverage and weak liquidity. This contrasts with a recent update from CIMB, which rates as Buy with $0.10 target.