Moody’s to review NagaCorp for downgrade pending action to address looming US$472 million bond repayment

Moody’s Investors Service said Friday it has placed NagaCorp’s B2 corporate family rating (CFR) and the B2 senior unsecured rating on the company’s US dollar bond on review for downgrade should it fail to take substantial action around refinancing looming debt in the coming months.

The review comes after Moody’s had already stated last November that efforts by NagaCorp ro repurchase up to US$120 million of its US$541.7 million notes due July 2024 was unlikely to help the company avoid a default when the remaining notes fall due. NagaCorp ultimately repurchased US$69.5 million of its notes, leaving around US$472 million outstanding.

In a Friday note, Moody’s analyst Yu Sheng Tay explained, “The ratings review reflects the likelihood of a downgrade if NagaCorp fails to make substantial progress over the next three months to refinance its outstanding US$472 million bond coming due in July 2024.”

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